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Meta (META) delivered a powerhouse conclusion to 2025, signaling a rapid acceleration from a social media conglomerate to a "personal superintelligence" leader. While the stock is trading sharply higher following a decisive beat on revenue and EPS, the company is committing to an unprecedented level of infrastructure investment to fuel its AI-native transformation. This transition is underscored by a historic commitment to infrastructure, as the company guided toward a massive capital expenditure range for 2026 to secure a strategic lead in the AI race. Furthermore, META’s Q1 revenue guidance of $53.5-$56.5 bln arrived well ahead of expectations, supported by a healthy macro backdrop and continued monetization efficiency gains.

• Q4 revenue reached $59.9 bln (up 24% yr/yr) with net income hitting $22.8 bln or $8.88 per share.
• Q4 CapEx totaled $22.1 bln, and the company provided a staggering FY26 CapEx range of $115-$135 bln to support Meta Superintelligence Labs and core business needs.
• Ad impressions increased 18% while the average price per ad rose 6% yr/yr, benefiting from increased advertiser demand and improved ad performance.
• Daily Active People (DAP) across the Family of Apps reached 3.5 bln in December.
• Instagram Reels watch time grew over 30% yr/yr in the US, while Threads saw a 20% lift in time spent following Q4 ranking optimizations.
• Operating margin contracted to 41% (down from 48% in the prior year) as total expenses rose 40% yr/yr, driven by AI talent hires and infrastructure costs.
• Reality Labs revenue fell 12% yr/yr to $955 mln, though the segment is shifting focus toward AI glasses, which saw sales triple in 2025.
• META expects FY26 operating income to be above 2025 levels in absolute dollars, despite the aggressive "step up" in infrastructure investment.

Briefing.com Analyst Insight:

META’s Q4 results confirm that the company has successfully pivoted from "efficiency" to "acceleration." The eye-popping FY26 CapEx guide, the majority of which is driven by infrastructure costs, signals that Zuckerberg views compute capacity as the ultimate strategic advantage for delivering personal superintelligence. While the margin contraction to 41% highlights the immense cost of scaling AI talent and servers, the core ad business is already proving these investments yield immediate dividends. For instance, the new sequence learning model architecture alone drove a 3.5% lift in ad clicks on Facebook. The formalization of "Meta Compute" and the recruitment of Dina Powell McCormick to tap sovereign and strategic capital suggest META is looking for creative ways to fund its infrastructure footprint far beyond what a traditional corporate balance sheet typically supports. Ultimately, META's long-term success hinges on whether it can successfully internalize the AI stack - from the Meta Superintelligence Labs models to its own custom silicon program - to maintain its lead in the "smartphone moment" of AI glasses while continuing to grow consolidated operating profit.