Shares of Fb proprietor Meta Platforms (Nasdaq: META) are surging in premarket buying and selling this morning after the corporate introduced its fourth-quarter 2025 earnings yesterday afternoon.
The earnings not solely exceeded investor expectations, however CEO Mark Zuckerberg additionally laid out his imaginative and prescient for the way artificial intelligence is about to remodel the corporate—and private computing—within the years forward. Right here’s what you should know.
Meta experiences robust This autumn 2025 earnings
Expectations for Meta’s This autumn 2025 had been comparatively excessive, however when the corporate announced its newest quarterly earnings after the bell final night time, they exceeded what most buyers had hoped for.
Listed below are the important thing financials Meta reported:
- Quarterly income: $59.89 billion
- Earnings per share (EPS): $8.88
Quarterly income was a 24% improve from the identical interval a yr earlier. As noted by CNBC, it additionally blew previous LSEG analyst expectations of $58.59 billion. In different phrases, Meta introduced in round $1.3 billion greater than most individuals thought it might.
Thanks partly to its robust income, Meta additionally beat earnings per share (EPS) estimates. Most LSEG analysts had been anticipating an EPS of $8.23. Meta beat that by 60 cents per share.
The corporate additionally revealed another fascinating metrics, most notably about its person base.
For the quarter, Meta reported a household day by day energetic folks (DAP) metric of three.58 billion. “Household day by day energetic folks” is the time period Meta makes use of to encapsulate what number of people use its household of merchandise every day.
Meta’s household of merchandise consists of Fb, Instagram, and WhatsApp. Meta’s household DAP for the fourth quarter grew 7% yr over yr.
Wanting forward on the firm’s financials, Meta mentioned it expects its present first-quarter 2026 income to return in at between $53.5 billion and $56.5 billion. That’s considerably forward of the $51.41 billion most analysts had been anticipating.
Zuckerberg tries to foretell the long run—once more
Meta didn’t simply reveal its monetary metrics. Zuckerberg additionally spoke about the way forward for know-how and the best way synthetic intelligence will each increase Meta’s enterprise and alter private computing extra broadly.
To the latter level, the chief government mentioned he believes AI-powered good glasses will symbolize a paradigm shift in private computing, likening the specs to the smartphone’s influence on computing, and saying glasses will likely be “the last word incarnation” of the gadget we use most effectively to devour AI content material.
“They’re going to have the ability to see what you see, hear what you hear, speak to you and assist you as you go about your day, and even present you info or generate customized UI proper there in your imaginative and prescient,” Zuckerberg stated in feedback posted to Fb.
“I believe we’re at a second just like when smartphones arrived, and it was clearly solely a matter of time till all these flip telephones turned smartphones,” he added. “It’s onerous to think about a world in a number of years the place most glasses aren’t AI glasses.”
His assertion right here isn’t a lot of a shock, nevertheless, contemplating how Meta has lengthy labored on gadgets geared toward dethroning the smartphone as folks’s private laptop of alternative.
Meta first tried to do that with its digital actuality headsets and digital “metaverse” world. These initiative had been run by the corporate’s Actuality Labs division. However early this month, Meta initiated massive layoffs at Reality Labs—and admitted that its VR product by no means caught on with most of the people.
AI as an promoting booster
Any {hardware} that Meta makes nonetheless represents a minuscule a part of Fb’s revenues. The corporate is, in spite of everything, primarily an promoting firm, not a {hardware} know-how one.
Round 97% of its revenues are made out of promoting adverts throughout its platforms.
Not surprisingly, Zuckerberg touched on how synthetic intelligence can be a lift to its present advert enterprise. The Meta CEO mentioned that it was at present engaged on merging its LLMs with its adverts system and mentioned that its present “world class suggestion methods,” which its adverts depend on, had been nonetheless “primitive in comparison with what will likely be doable quickly.”
For instance, Zuckerberg identified that Meta’s current advert methods assist companies discover the suitable, particular customers who’re prone to buy their items.
However because of AI, “New agentic purchasing instruments will permit folks to search out simply the suitable very particular set of merchandise from the companies in our catalogue.”
It’s not the one method that Meta’s advert enterprise stands to profit from the unreal intelligence growth.
Meta, like many tech giants, is dashing to construct out its private knowledge middle capability to run synthetic intelligence instruments on. By proudly owning the info middle instantly, Meta and these different corporations will have the ability to lower down on prices, that are at present paid to third-party knowledge middle house owners.
As analyst agency MoffettNathanson identified in a analysis notice on Thursday, Meta’s buildup of its personal knowledge facilities may benefit its enterprise.
“[Given] the AI capability constraint dealing with the trade, Meta has been compelled to make use of third-party cloud providing as their very own knowledge facilities usually are not prepared to maneuver on-line but,” the analysis agency famous. “Longer-term, these workloads ought to shift from third get together contracts to Meta’s personal services which, we expect, ought to produce margin leverage.”
Meta’s inventory value jumps
Given Meta’s sturdy This autumn 2025 outcomes and a Q1 2026 forecast that beat what most analysts had been anticipating, it’s little shock that the corporate’s inventory value is surging in premarket buying and selling this month.
As of this writing, shares of Meta Platforms (Nasdaq: META) are up round 8.8% to $668.73 per share.
In its Thursday notice, MoffettNathanson maintained its “purchase” score for Meta’s inventory and elevated its value goal to $810.
As of yesterday’s shut, META shares had solely elevated about 1.3% year-to-date, in response to Yahoo Finance knowledge.
If the corporate’s premarket inventory value achieve holds when markets open, that may imply Meta’s inventory has already surged 10% within the first month of 2026.
Right now’s premarket achieve additionally signifies that Meta’s inventory value is now out of the purple for the previous yr. As of yesterday’s market shut, Meta’s inventory was down about eight-tenths of a % over the previous yr. That contrasts with the Nasdaq Composite’s broader achieve of round 21% over the identical interval.
