Meta Reports 24% Revenue Growth in Q4
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 25 2026
0mins
Should l Buy META?
Source: NASDAQ.COM
- Strong Revenue Growth: Meta reported $59.9 billion in revenue for Q4, marking a 24% year-over-year increase, with management guiding for Q1 2026 revenue between $53.5 billion and $56.5 billion, suggesting a nearly 30% growth rate, showcasing the company's robust pricing power in advertising.
- Surging Expenses Impacting Profitability: Despite impressive revenue growth, Meta's total expenses surged 40% year-over-year to $35.1 billion, causing its operating margin to decline from 48% to 41%, significantly slowing earnings growth to just 11% per share in Q4.
- Significant Capital Expenditure Increase: Meta forecasts capital expenditures for 2026 to range between $115 billion and $135 billion, which is projected to be three times the capital expenditures of 2024, leading to substantial future depreciation charges that will further compress profitability.
- Increased Valuation Risks: With a current price-to-earnings ratio of about 25, the market may reassess Meta's valuation due to ongoing margin compression and high spending; if the P/E ratio drops to 20, the stock price could decline significantly, necessitating caution from investors.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 579.230
Low
655.15
Averages
824.71
High
1117
Current: 579.230
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Decision Factors: When selecting investment targets, investors must consider factors such as financial health, market share, and future growth potential, as these will directly impact investment returns.
- Future Outlook: Although both companies exhibit solid market performance, investors should closely monitor their financial reports and market dynamics to make informed investment decisions.
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- Capital Expenditure Plans: In 2026, Alphabet plans to spend $175 billion to $185 billion, while Amazon and Meta are set to invest $200 billion and $115 billion to $135 billion respectively; Ackman believes these investments will drive future earnings growth despite ongoing concerns about returns.
- AI Progress and Market Demand: Ackman praised the AI advancements of these companies, noting that Alphabet's AI Overviews has over 2 billion users, Amazon's cloud services thrive on strong AI demand, and Meta leverages AI to enhance user engagement and advertising effectiveness, showcasing their leadership in technological innovation.
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