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Meta Posts Stronger-Than-Expected Q4 Results Despite Rising Costs
Advertising revenue surge drives earnings beat, but expenses continue to climb for tech giant.
Jan. 28, 2026 at 9:31pm
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Meta, the parent company of Facebook, reported stronger-than-expected fourth-quarter financial results, with revenue jumping 24% year-over-year to $59.89 billion. The company's earnings per share of $8.88 also beat analyst forecasts, sending shares sharply higher in after-hours trading. However, Meta's expenses grew 40% to $35.15 billion as the company continues to invest heavily in infrastructure and employee compensation, particularly for its growing artificial intelligence teams.
Why it matters
Meta's ability to deliver solid financial results despite rising costs and economic uncertainty underscores the company's continued dominance in digital advertising. However, the significant increase in expenses, driven by infrastructure upgrades and high-priced AI talent, raises questions about Meta's ability to maintain profitability as it pursues ambitious technology initiatives.
The details
Meta reported fourth-quarter revenue of $59.89 billion, up 24% from the same period a year earlier, and earnings per share of $8.88, exceeding analyst estimates. The company's advertising revenue remained strong, helping to offset the impact of rising costs. However, Meta's expenses grew 40% to $35.15 billion, driven by infrastructure investments and employee compensation, particularly for its artificial intelligence teams that the company has been aggressively hiring.
- Meta reported its fourth-quarter results on January 29, 2026.
- The company is forecasting revenue in the range of $53.5 billion to $56.5 billion for the current quarter.
The players
Meta
The parent company of Facebook, Instagram, and other social media and technology platforms.
Debra Aho Williamson
Chief analyst at Sonata Insights, a research firm that provides analysis on the technology and media industries.
What they’re saying
“Once again, Meta surpassed analysts' earnings expectations for the quarter, cementing its position as one of the world's most dominant media companies.”
— Debra Aho Williamson, Chief Analyst
What’s next
Meta's guidance for the current quarter and its forecast for 2026 expenses will be closely watched by investors as the company continues to balance its growth initiatives with maintaining profitability.
The takeaway
Meta's ability to deliver strong financial results despite rising costs underscores the company's enduring dominance in digital advertising. However, the significant increase in expenses, particularly for its artificial intelligence efforts, raises concerns about Meta's ability to sustain its profitability as it pursues ambitious technology initiatives.

