Meta reported a robust Q4 2025 performance with revenue reaching $59.893 billion, marking a 24% year-over-year increase and surpassing Wall Street expectations. The company's net profit rose by 6% to $22.768 billion, while diluted earnings per share increased by 11% to $8.88. Advertising remains the primary revenue driver, contributing $58.137 billion, or 97% of total revenue. Meta's daily active users grew by 7% to 3.58 billion, with ad impressions up 18% and average ad prices rising 6% year-over-year. The company plans significant AI investments, with capital expenditures projected between $115 billion and $135 billion in 2026.
In contrast, Microsoft's stock faced pressure despite strong demand for its Azure cloud services, which saw a 38% revenue growth in the latest quarter. However, overall revenue growth slowed slightly to 17%. Concerns over competition and supply constraints impacted investor sentiment, leading to an 8% drop in after-hours trading. Microsoft emphasized strong demand for its AI products, with Microsoft 365 Copilot's daily active users increasing tenfold and paying users growing by 160% year-over-year, reaching 15 million.
Meta's Q4 Revenue Surges to $59.8 Billion, Outpacing Expectations
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