Meta tops Q4 forecasts, expects strong Q1 performance

28th Jan 2026 22:37

(Sharecast News) - Social media giant Meta delivered a stronger‑than‑expected fourth quarter performance on Wednesday, on the back of a solid performance by its advertising business.

Meta posted Q4 earnings of $8.88 per share against forecasts of $8.23, while revenues of $59.89bn came in ahead of the $58.59bn expected on the Street.

Sales rose 24% year‑on‑year in Q4, with advertising making up $58.1bn or around 97% of total revenue. Daily active users reached 3.58bn, broadly matching expectations.

Looking ahead, Meta said first‑quarter revenues were likely to come in between $53.5bn and $56.5bn, ahead of consensus, with chief financial officer Susan Li pointing to firm demand through the end of 2025 and into early 2026.

Meta guided for 2026 expenses of $162bn to $169bn and said capital spending tied to its AI build‑out would surge to $115bn to $135bn, almost double 2025 levels and above analyst estimates, reflecting heavier investment in its Meta Superintelligence Labs and core operations.

The California-based firm's Reality Labs unit logged an operating loss of $6.02bn while generating $955m in sales in Q4, wider than the $5.67bn operating loss expected, taking Reality Labs to nearly $80bn in total operating losses since late 2020.

Meta also warned that regulatory and legal challenges in the US and EU could materially affect results, noting that several high‑profile social‑media cases beginning this year could lead to financial losses.

As of 2235 GMT, Meta shares were up 8.59% in extended trading at $726.16 each.

Reporting by Iain Gilbert at Sharecast.com