Meta has reported stronger-than-expected fourth-quarter and full-year financial results, surpassing Wall Street estimates on both revenue and earnings while significantly accelerating investment in artificial intelligence infrastructure.
In 2025, Meta’s annual revenue exceeded $200 billion for the first time, marking a major milestone for the company. Net income reached $60 billion, slightly below the prior year’s total, largely due to continued operating losses within the Reality Labs division. Despite these losses, Meta’s core advertising business remained resilient and continued to fund large-scale strategic investments.
Capital expenditure emerged as a central theme of the earnings report. Meta’s spending on infrastructure rose more than 80% year over year to $72 billion, reflecting intensified investment in data centers and computing capacity. The company indicated that capital expenditure could grow at a similar pace in the year ahead, with total AI-related infrastructure investment expected to reach $115 billion to $135 billion over the longer term.
While short-term improvements remain focused on content recommendations and advertising efficiency across Meta’s platforms, the company is increasingly prioritizing long-term AI development. In 2025, the tech company released the newest version of its large language model (LLM) Llama and received approval from the European regulator to train its artificial intelligence (AI) models on publicly available social media content.
This strategy has coincided with a reduced emphasis on virtual reality. Meta’s Reality Labs recorded $19.2 billion in operating losses in 2025, bringing cumulative losses from the division close to $90 billion over seven years. The company recently reduced headcount in the unit and has shifted attention toward AI-powered smartglasses developed in partnership with Ray-Ban and Oakley, which are gaining stronger market traction than its VR headsets.
Advertising continues to account for the majority of Meta’s revenue and remains central to funding its AI ambitions. AI-enabled devices and services are expected to further enhance data-driven content and ad personalization capabilities, reinforcing Meta’s core business model.
