The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Meta Platforms leaped eight spots to No.&nbsp;22 as its revenue rose 22% year over year, powered by advertising on Facebook and Instagram. Profits topped $62&nbsp;billion, even as Meta spent prodigiously on AI development.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

These 50 companies exemplify the innovation, progress, and potential of AI.

AI Innovators 2025-Meta

Fortune 50 AI Innovators

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

GLOBAL-500-2023-Meta-Platforms

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Meta

The social media giant and metaverse pioneer formerly named Facebook posted a 1% decline in revenues in 2022, the first such decline in its history as a public company; it still brought in nearly $117 billion. 
<ul> 
 	<li>With a round of layoffs announced in late 2022 and another in spring 2023, Meta cut about 21,000 jobs, or roughly a quarter of its workforce. CEO Mark Zuckerberg described 2023 as a “year of efficiency” in which a leaner Meta can execute its highest priorities more quickly.</li> 
 	<li>Meta pivoted some of its attention and resources from the metaverse to generative A.I. In February 2023, the company announced an A.I. language model called LLaMA that it would use in its chatbots to compete with Google and Microsoft.</li> 
 	<li>In May 2023, the U.S. Federal Trade Commission accused Meta’s core Facebook platform of violating an earlier agreement in which the company had pledged to protect the data of users of its Messenger Kids app. The FTC proposed modifying the agreement to forbid Meta from monetizing minors’ data in any way. The company strongly objected to the proposal, calling it a “political stunt.”</li> 
 	<li>Later in May, the European Union ordered Meta to stop sending Europeans’ personal data to the U.S., and imposed a $1.3 billion fine on the company for its past data transfers, which it said violated European privacy laws.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Meta

The company formerly known as Facebook climbed seven spots on this year’s Fortune 500; its revenue grew 37.2% in 2021, to $118 billion, and it generated nearly $40 billion in profit. But the name change to Meta Platforms, announced by CEO Mark Zuckerberg in October 2021, is a sign of some of the challenges the company now faces. Meta Platforms’ core social media product, Facebook itself, saw its number of daily active users decline for the first time over the last three months of 2021. Meta also acknowledged that recent changes in privacy settings on Apple’s iOS apps were hurting Facebook’s ad-sales revenue. That changing landscape adds momentum to Meta’s new commitment to the metaverse, the digital and virtual world that Citi predicts will be worth $13 trillion in 2030. In December, Meta disclosed that it had already spent $10 billion on metaverse-related projects. The company admits those will take a long time to pay off, however, and Wall Street is concerned: The company’s share price fell almost 40% over the first four months of 2022.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-086-Facebook

Facebook, it appears, can’t be hurt—not by major ad buyers boycotting its service, not by state and federal investigations, and not even by a pandemic. Despite the impact of COVID-19 on its ad sales, Facebook impressed Wall Street all year by beating expectations. The company ended 2020 with almost $86 billion in revenues, up 22% year over year, and with $29 billion in profits, up nearly 58%. But Facebook faced major backlash for lax handling of hate on its service, including from former President Donald Trump, whom the service eventually barred after the U.S. Capitol riot. And this year, Facebook risks a big financial hit owing to Apple’s new privacy controls that let users limit tracking of their data.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-34-Facebook

Collectively, the ranked companies produced a three-year average shareholder return of 33%, vs. 19% for the S&P 500.

FGC-2021-Facebook

100 Fastest-Growing Companies

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-144-Facebook

Facebook was the focus of increased government scrutiny in 2019. Regulators at the state, federal, and international level reviewed the ways the company has handled user data and permitted the dissemination of misinformation—investigations that sometimes led to hefty fines or other penalties. Despite the mounting heat, Facebook continued to rake in revenue in 2019. The company, led by CEO Mark Zuckerberg, had $70.7 billion in sales, up nearly 27% from the previous year. But 2020 will be a particularly challenging one for Facebook as it tries to proactively remove misinformation about the coronavirus pandemic while policing bad actors on its platform during the upcoming U.S. presidential election.

Explore this year's ranking of the 50 companies with the best long-term growth potential.

Future-50-2020-Facebook

Last but not least, the social media player’s underlying business remains strong. And new business opportunities continue to emerge: A global e-commerce strategy (including WhatsApp Pay) shows signs of promise, for example. Analysts project 17% to 20% future, long-term growth. At the same time, reputational risk is high—as is the very real threat of regulatory crackdowns across different regions, including the United States. Perhaps even more ominous, the Facebook core product is seeing declining engagement levels with younger demographics. In short: There is a reason the social network is on this list, but also a reason it comes in at No. 50.

The Future 50

This year's Fortune 500 marks the 66th running of the list.

F500-2020-046-Facebook

Facebook was the focus of increased government scrutiny in 2019. Regulators at the state, federal, and international level reviewed the ways the company has handled user data and permitted the dissemination of misinformation—investigations that sometimes led to hefty fines or other penalties. But despite the mounting heat, Facebook continued to rake in revenue in 2019. The company, led by CEO Mark Zuckerberg, had $70.7 billion in sales, up nearly 27% from the previous year, which helped it rise nearly a dozen ranks in the Fortune 500. But 2020 will be particularly challenging one for Facebook as it tries to proactively remove misinformation about the coronavirus pandemic while policing bad actors on its platform during the upcoming U.S. presidential election.

Collectively, the ranked companies produced a three-year average shareholder return of 19%, vs. 11% for the S&P 500.

Fastest Growing Companies 2020-52-Facebook

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Fortune's proprietary methodology allows us to zero in on the 50 global firms that are best poised to deliver—and continue delivering—above average gains.

This year's Fortune 500 marks the 65th running of the list.

Everybody loves an up-and-comer: 2019's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

Welcome to the inaugural Fortune Future 50, our new ranking of companies best positioned for breakout growth.

This year's Fortune 500 marks the 64th running of the list.

Everybody loves an up-and-comer: 2018's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Everybody loves an up-and-comer: 2017's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

Too fast to be stopped: 2016's top three-year performers in revenue, profits, and stock returns.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Nike, Cisco, MasterCard, SABMiller, Vodafone, Google—and 45 other companies that are doing well by doing good.

Change the World

This year's Fastest-Growing Companies marks the 19th running of the list. In our annual list of public companies with the most stellar three-year profit, revenue, and stock growth, Facebook makes its first appearance.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fastest-growing Companies

Revenue 3 Yr Growth Rank

Revenue 3 Yr Annual Growth Rate

EPS 3 Yr Growth Rank

EPS 3 Yr Annual Growth Rate

Total Return 3 Yr Rank

Total Return 3 Yr Annual Rate

Beat S&P 500 3 Yr Return

Current Streak

Years on List

Sector

Future 50

Overall Score

Culture rank

Process rank

Product rank

Years on list

Previous rank

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Founded in 2004 as Facebook, Meta operates the world’s largest social media platforms and has heavily influenced the development of the internet over the past two decades through its pioneering use of personal data collection and targeted advertising. Meta’s products include Facebook, image-sharing app Instagram, and messaging platforms Messenger and WhatsApp; together, they enable users to keep in touch, share images and videos, and buy and sell goods. Meta’s Reality Labs segment develops virtual-reality-related consumer hardware and software, while Meta AI develops artificial intelligence tools including language-processing models. Facebook renamed itself Meta in 2021.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Meta Platforms (META): Company Profile, Stock Price, News, Rankings

legacy

Meta Platforms

meta platforms

Good afternoon. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Meta Fourth Quarter and Full Year 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be an opportunity to ask questions. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, again, press star one. We ask that you limit yourself to one question, and this call will be recorded. Thank you very much. Kenneth Dorell, Meta's Director of Investor Relations, you may begin.

Thank you. Good afternoon, and welcome to Meta Platforms' Fourth Quarter and Full Year 2025 Earnings Conference Call. Joining me today to discuss our results are Mark Zuckerberg, CEO, and Susan Li, CFO. Our remarks today will include forward-looking statements, which are based on assumptions as of today. Actual results may differ materially as a result of various factors, including those set forth in today's earnings press release and in our quarterly report on Form 10-Q filed with the SEC. We undertake no obligation to update any forward-looking statement. During this call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our website at investor.meta.com. And now I'd like to turn the call over to Mark.

All right. Hey, everyone. Thanks for joining us. We ended 2025 strong, with more than 3.5 billion people now using at least one of our apps every day. That includes more than 2 billion daily actives each on Facebook and WhatsApp, and just shy of that on Instagram. Our business also performed very well, thanks to record-breaking holiday demand and AI-driven performance gains. We are now seeing a major AI acceleration. I expect 2026 to be a year where this wave accelerates even further on several fronts. We're starting to see agents really work. This will unlock the ability to build completely new products and transform how we work. In 2025, we rebuilt the foundations of our AI program. Over the coming months, we're going to start shipping our new models and products.

I expect our first models will be good, but more importantly, we'll show the rapid trajectory that we're on. And then I expect us to steadily push the frontier over the course of the year as we continue to release new models. I'm very excited about the products that we're building. Our vision is building personal superintelligence. We're starting to see the promise of AI that understands our personal context, including our history, our interests, our content, and our relationships. A lot of what makes agents valuable is the unique context that they can see, and we believe that Meta will be able to provide a uniquely personal experience. We're also working on merging LLMs with the recommendation systems that power Facebook, Instagram, Threads, and our ad system.

Our world-class recommendation systems are already driving meaningful growth across our apps and ads business, but we think that the current systems are primitive compared to what will be possible soon. Today, our systems help people stay in touch with friends, understand the world, and find interesting and entertaining content. But soon, we'll be able to understand people's unique personal goals and tailor feeds to show each person content that helps them improve their lives in the ways that they want. This also has implications for commerce. Our ads today help businesses find just the right, very specific people who are interested in their products. New agentic shopping tools will allow people to find just the right, very specific set of products from the businesses in our catalog.

We're focused on making these experiences work across both our feeds and across business messaging, significantly increasing the capabilities of WhatsApp over time. New kinds of content will soon be possible as well. People want to express themselves and experience the world in the most immersive and interactive ways possible. We started with text and then moved to photos when we got phones with cameras and then moved to video when mobile networks got fast enough. Soon, we'll see an explosion of new media formats that are more immersive and interactive and only possible because of advances in AI. Our feeds will become more interactive overall. Today, our apps feel like algorithms that recommend content. Soon, you'll open our apps, and you'll have an AI that understands you and also happens to be able to show you great content or even generate great personalized content for you.

Glasses are the ultimate incarnation of this vision. They're going to be able to see what you see, hear what you hear, talk to you, and help you as you go about your day, and even show you information or generate custom UI, right there in your vision. Sales of our glasses more than tripled last year, and we think that they're some of the fastest-growing consumer electronics in history. Billions of people wear glasses or contacts for vision correction, and I think that we're at a moment similar to when smartphones arrived, and it was clearly only a matter of time until all those flip phones became smartphones. It's hard to imagine a world in several years where most glasses that people wear aren't AI glasses.

For Reality Labs, we are directing most of our investment towards glasses and wearables going forward, while focusing on making Horizon a massive success on mobile and making VR a profitable ecosystem over the coming years. I expect Reality Labs losses this year to be similar to last year, and this will likely be the peak as we start to gradually reduce our losses going forward while continuing to execute on our vision. As we plan for the future, we will continue to invest very significantly in infrastructure to train leading models and deliver personal superintelligence to billions of people and businesses around the world. I recently announced Meta Compute with the belief that being the most efficient at how we engineer, invest, and partner to build our infrastructure will become a strategic advantage.

Dina Powell McCormick also joined us as President and Vice Chairman, and she will lead our efforts to partner with governments, sovereigns, and strategic capital partners to expand our long-term capacity, including ensuring positive economic impact in the communities that we operate in around the world. An important part of Meta Compute will be making long-term investments in silicon and energy. We will continue working with key partners while advancing our own silicon program. We're architecting our systems that we can be flexible in the systems that we use, and we expect the cost per gigawatt to decrease significantly over time through optimizing both our technology and supply chain. The last thing that I wanna mention is that I think that 2026 is going to be the year that AI starts to dramatically change the way that we work.

As we navigate this, our North Star is building the best place for individuals to make a massive impact. So to do this, we're investing in AI-native tooling, so individuals at Meta can get more done. We're elevating individual contributors and flattening teams. We're starting to see projects that used to require big teams now be accomplished by a single, very talented person. I wanna make sure that as many of these very talented people as possible choose Meta as the place that they can make the greatest impact, to deliver personalized products to billions of people around the world. And if we do this, then I think that we're gonna get a lot more done, and I think it's gonna be a lot more fun. All right, that's everything I wanted to cover.

This is gonna be a big year for delivering personal superintelligence, accelerating our business, building infrastructure for the future, and shaping how our company will work going forward. As always, I am grateful for all the hard work of our teams and to all of you for being on this journey with us. Now, here's Susan.

Thanks, Mark, and good afternoon, everyone. Let's begin with our segment results. All comparisons are on a year-over-year basis, unless otherwise noted. Our community across the Family of Apps continues to grow, and we estimate more than 3.5 billion people used at least one of our Family of Apps on a daily basis in December. Q4 total Family of Apps revenue was $58.9 billion, up 25% year-over-year. Q4 Family of Apps ad revenue was $58.1 billion, up 24% or 23% on a constant currency basis. In Q4, the total number of ad impressions served across our services increased 18%. Impression growth was healthy across all regions, driven primarily by engagement and user growth and, to a lesser degree, ad load optimizations.

The average price per ad increased 6% year-over-year, benefiting from increased advertiser demand, largely driven by improved ad performance. Family of Apps other revenue was $801 million, up 54%, driven by WhatsApp paid messaging revenue growth, as well as Meta Verified subscriptions. Within our Reality Labs segment, Q4 revenue was $955 million, down 12% year-over-year. As we noted on the last call, the year-over-year decline in Reality Labs revenue is due to us lapping the introduction of Quest 3S in Q4 of 2024, as well as retail partners procuring Quest headsets during the third quarter of 2025 to prepare for the holiday season, which was recorded as revenue in Q3. Moving now to our consolidated results.

Q4 total revenue was $59.9 billion, up 24% or 23% on a constant currency basis. Q4 total expenses were $35.1 billion, up 40% compared to last year. Year-over-year growth was driven primarily by employee compensation expenses, legal expenses, and infrastructure costs. Growth in employee compensation expenses reflects the technical hires we've added this year, particularly AI talent. Legal expense growth was due to both lapping legal accrual reversals in Q4 of 2024 and charges recorded in Q4 2025. Infrastructure expense growth was driven by higher depreciation, cloud spend, and other operating expenses. We ended Q4 with over 78,800 employees, up 6% year-over-year, driven by hiring in priority areas of monetization, infrastructure, Meta Superintelligence Labs, as well as regulation and compliance.

Fourth quarter operating income was $24.7 billion, representing a 41% operating margin. Q4 interest and other income was $609 million, driven primarily by unrealized gains on our equity investments. Our tax rate for the quarter was 10%, slightly lower than our outlook of 12%-15% due to the settlement of matters with tax authorities. Net income was $22.8 billion or $8.88 per share. Capital expenditures, including principal payments on finance leases, were $22.1 billion, driven by investments in data centers, servers, and network infrastructure. Free cash flow was $14.1 billion. We ended the quarter with $81.6 billion in cash and marketable securities and $58.7 billion in debt. Turning now to the business performance.

There are two primary factors that drive our revenue performance: our ability to deliver engaging experiences for our community and our effectiveness at monetizing that engagement over time. On the first, we're continuing to drive incremental engagement from ranking and product improvements. Instagram Reels had another strong quarter, with watch time up more than 30% year-over-year in the U.S. Engagement is benefiting from several optimizations we made to improve the quality of recommendations, including simplifying our ranking architecture to enable more efficient model scaling. This unlocked the ability for our systems to consider longer interaction histories to better identify a person's interests. On Facebook, video time continued to grow double digits year-over-year in the U.S., and we're seeing strong results from our ranking and product efforts on both feed and video surfaces.

The optimizations we made in Q4 drove a 7% lift in views of organic feed and video posts on Facebook, resulting in the largest quarterly revenue impact from Facebook product launches in the past two years. We're continuing to increase the freshness and originality of content recommendations as well. On Facebook, our systems are surfacing over 25% more Reels published that day than the prior quarter. On Instagram, we grew the prevalence of original content in the U.S. by 10 percentage points in Q4, with 75% of recommendations now coming from original posts. Threads is also seeing strong momentum, again, benefiting from recommendation improvements. The optimizations we made in Q4 drove a 20% lift in Threads time spent. Turning to 2026, we see a lot of opportunity to drive additional gains.

This includes scaling the complexity and amount of training data we use in our models, while continuing to make our systems more responsive to people's real-time interests. We're also focused on incorporating LLMs to understand content more deeply across our platform, which will enable more personalized recommendations. Another big area of investment this year is developing the next generation of our recommendation systems. We have several big bets on this front, including building new model architectures from the ground up that will work on top of LLMs, leveraging the world knowledge and reasoning capabilities of an LLM to better infer people's interests. Beyond improvements to our recommendation systems, we expect to use the models developed by Meta Superintelligence Labs to deliver compelling and differentiated AI products. One area we're already seeing promise is with AI dubbing of videos into local languages.

We are now supporting nine different languages, with hundreds of millions of people watching AI-translated videos every day. This is already driving incremental time spent on Instagram, and we plan to launch support for more languages over the course of this year. We are also seeing strong traction with our media creation tools. Nearly 10% of the Reels people view each day are now created in our Edits app, almost tripling from last quarter. Within Meta AI, the number of daily actives generating media tripled year-over-year in Q4. This year, we expect to advance the capabilities of our underlying media generation models and ship new features to further enhance the product experience. Another area we're focused on for Meta AI is personalization. We're seeing in our early testing that personalized responses drive higher levels of engagement, and we expect to significantly advance the personalization of Meta AI this year.

This dovetails with our investments in content understanding, which will enable our systems to develop a deeper understanding of each person's interests and preference, preferences, while also identifying the most relevant content across our platform to pull into responses. Turning to the second driver of our revenue performance, increasing monetization efficiency. The first part of this work is optimizing the level of ads within organic engagement. Here, our focus remains on tuning our systems to identify the right time and place to deliver ads. In some cases, this enables us to grow the overall level of ad load while preserving the user experience. However, an increasingly important part of this work is finding opportunities to drive incremental conversions within the same overall level of ad load by determining when a person is more interested in seeing an ad.

In fact, in the second half of 2025, our initiatives on Facebook to redistribute ads across users and sessions delivered a nearly four times larger revenue impact than Facebook ad load increases. We also continue to make progress on bringing ads to our newer services. Within Threads, we're beginning to expand ads to all remaining countries this month, including the U.K., European Union, and Brazil. On WhatsApp, we expect to complete the rollout of ads in Status throughout the year, with the level of ads remaining low in the near term while we follow our standard approach of optimizing ad formats and performance before ramping inventory. Moving to the second part of increasing monetization efficiency, improving performance for the businesses who use our tools. We're seeing very strong results from the ad performance investments we made throughout 2025, with year-over-year conversion growth accelerating through the fourth quarter.

We expect the set of investments we're making in 2026 will enable us to drive further gains as we continue to integrate AI across all layers of the marketing and customer engagement funnel. The first area is our ad system, where we're continuing to scale the complexity and size of our models to better select which ads to show. In Q4, we doubled the number of GPUs we use to train our GEM model for ads ranking. We also adopted a new sequence learning model architecture, which is capable of using longer sequences of user behavior and processing much richer information about each piece of content. The GEM and sequence learning improvements together drove a 3.5% lift in ad clicks on Facebook, and a more than 1% gain in conversions on Instagram in Q4.

This new sequence learning architecture is significantly more efficient than our prior architectures, which should enable us to further scale up the data, complexity, and compute we use in our future ranking models to deliver performance gains. As we scale up our foundational ads models like GEM, we are also developing more advanced models to use downstream of them at runtime for ads inference. In Q4, we launched a new runtime model across Instagram Feed, Stories, and Reels, resulting in a 3% increase in conversion rates in Q4. We continue to progress on our model unification efforts under Lattice as well. After seeing strong success with the consolidation of Facebook Feed and video models in the first half of 2025, in Q4, we consolidated models for Facebook Stories and other surfaces into the overall Facebook model.

This, along with a series of back-end improvements, drove a 12% increase in ads quality. In 2026, we expect to consolidate more models than we had in the prior two years as we continue to evolve our systems towards running a smaller number of highly capable models. Moving to the next area, ads products. We continue investing in ways to help businesses leverage AI to reduce the friction of setting up and optimizing an ad campaign. In Q4, we started testing our Meta AI business assistant with advertisers, which helps with tasks like campaign optimization and account support. In the coming months, we'll make it available to more advertisers, so each business has an AI assistant they can chat with that remembers their business's goals and provides personalized recommendations on how to improve performance. Another area we're deploying AI to improve performance is ad creative.

The combined revenue run rate of video generation tools hit $10 billion in Q4, with quarter-over-quarter growth outpacing the increase in overall ads revenue by nearly three times. We are also seeing very good results from our incremental attribution feature, which optimizes for incremental conversions in real time. Our latest model rollout in Q4 is driving a 24% increase in incremental conversions versus our standard attribution model, and this product has already achieved a multi-billion dollar annual run rate just seven months since launching. The last area of our monetization work I'll cover is business messaging, where we're seeing strong momentum across our portfolio of solutions.

Click-to-Message ads revenue growth accelerated in Q4, with the U.S. up more than 50% year-over-year, driven by strong adoption of our website-to-message ads, which direct people to a business's website for more information before choosing to launch a chat. Paid messaging within WhatsApp continues to scale as well, crossing a $2 billion annual run rate in Q4. Finally, we're seeing good early traction with our business AIs in Mexico and the Philippines, with over one million weekly conversations between people and business AIs now happening on our messaging platforms. This year, we will expand availability of our business AIs to more markets, while also extending their capabilities, so they not only answer questions on topics like product availability, but can help people get things done right within WhatsApp.

We speak a lot about how AI is improving our products, but I'd like to take a moment to give an update on how it's changing the way we work. Mark mentioned our focus on making Meta a place where individuals can have significant impact. A big focus of this is to enable the adoption and advancement of our AI coding tools, where we're seeing strong momentum. Since the beginning of 2025, we've seen a 30% increase in output per engineer, with the majority of that growth coming from the adoption of agentic coding, which saw a big jump in Q4. We're seeing even stronger gains with power users of AI coding tools, whose output has increased 80% year-over-year. We expect this growth to accelerate through the next half. Next, I would like to discuss our approach to capital allocation.

We have significant opportunities to improve our core business in 2026. We plan to continue to prioritize investing in the business to support these opportunities, while also positioning us for an entirely new and exciting product cycle over the coming years, powered by our AI models. Procuring sufficient infrastructure capacity is central to these initiatives, and we're working to meet our silicon needs by deploying a variety of chips that optimally support each of our different workloads. To that end, in Q4, we extended our Andromeda ads retrieval engine, so it can now run on NVIDIA, AMD, and MTIA. This, along with model innovations, enabled us to nearly triple Andromeda's compute efficiency. In Q1, we will extend our MTIA program to support our core ranking and recommendation training workloads, in addition to the inference workloads it currently runs.

More broadly, as we invest in infrastructure to meet our business needs, we continue to prioritize maintaining long-term flexibility, so we can adapt to how the market develops. We're doing so in several ways, including changing how we develop data center sites, establishing strategic partnerships, contracting cloud capacity, and establishing new ownership structures for some of our large data center sites. We have a strong net cash balance and expect our business will continue to generate sufficient cash to fund our infrastructure investments in 2026, which is reflected in our expectations. Nonetheless, we will continue to look for opportunities to periodically supplement our strong operating cash flow with prudent amounts of cost-efficient external financing, which may lead us to eventually maintain a positive net debt balance.

Moving to our financial outlook, we expect our first quarter 2026 total revenue to be in the range of $53.5 billion-$56.5 billion. Our guidance assumes foreign currency is an approximately 4% tailwind to year-over-year total revenue growth based on current exchange rates. Turning to the expense and CapEx outlooks, we expect full year 2026 total expenses to be in the range of $162 billion-$169 billion. The majority of expense growth will be driven by infrastructure costs, which includes third-party cloud spend, higher depreciation, and higher infrastructure operating expenses. The second-largest contributor to total expense growth is employee compensation, driven by investments in technical talent. This includes 2026 hires to support our priority areas, particularly AI, as well as a full year of expenses from 2025 hires.

At a segment level, we expect expense growth to be driven by the Family of Apps, with Reality Labs' operating losses remaining similar to 2025 levels. We anticipate 2026 capital expenditures, including principal payments on finance leases, to be in the range of $115 billion-$135 billion, with year-over-year growth driven by increased investment to support our Meta Superintelligence Labs efforts and core business. Despite the meaningful step up in infrastructure investment, in 2026, we expect to deliver operating income that is above 2025 operating income. Absent any changes to our tax landscape, we expect our full year 2026 tax rate to be 13%-16%. Finally, we recently aligned with the European Commission on further changes to our less personalized ads offering, which we will begin rolling out this quarter.

However, we continue to monitor legal and regulatory headwinds in the E.U. and the U.S. that could significantly impact our business and financial results. For example, we continue to see scrutiny on youth-related issues and have a number of trials scheduled for this year in the U.S., which may ultimately result in a material loss. In closing, 2025 was another strong year for our company. The investments we've made to improve our business are continuing to drive strong growth, and we have an exciting roadmap this year to deliver new experiences and services for our global community. As always, thank you to our teams for their hard work and commitment to our mission. With that, Krista, let's open up the call for questions.

Thank you. We will now open the lines for a question-and-answer session. To ask a question, please press star one on your touchtone phone. To withdraw your question, again, press star one. Please limit yourself to one question. Please pick up your handset before asking your question to ensure clarity. If you are streaming today's call, please mute your computer speakers. Your first question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.

Thanks for taking my questions. I've one for Mark, one for Susan. Mark, one is a long-term question. As you think about ramping all this investment and the personal intelligence opportunity, the Meta Compute opportunity, can you walk us through a little bit how you think about the largest revenue or ROIC long-term opportunities you're trying to unlock with those over the next, call it three, five, 10 years through all the investment? And then, Susan, a little more near term, more like 2026. I think the guide is the fastest growth you've had in almost five years.

I know you have a lot of improvements on recommendations and in monetization efficiency, but can you just sort of help us a little bit understand two or three of the biggest drivers of this inflection you're seeing on revenue in 2026?

Yeah, I guess I can start with the first one. Although I have to say up front that I think my answers to a lot of your questions on this particular call may be somewhat unfulfilling because we're in this interesting period where we've been rebuilding our AI effort, and we're six months into that, and I'm happy with how it's going. But we are going to be rolling out our initial set of models and products and businesses around that over the coming months, and I will have a lot more to share on all of those fronts at that point.

So I'm happy to offer kind of a high-level view of some of the stuff, but, but I apologize in advance that not much of this is going to be particularly detailed, but it will be exciting as we roll it out. I think the theme on the business, I mean, this is... I don't think I'm going to break any new ground here, but you know, there are several major business opportunities that we're focused on. You know, I think that one is just going to be improving the core products and accelerating the core, the current business. I talked about that in terms of the connecting of the recommendation systems and the LLMs, which I think will both improve the quality of the organic experience and of advertising.

We're going to see the generation of media improve the quality of content, which, coupled with the improvements in the recommendation systems, we expect to generally accelerate the quality and effectiveness of the core business, both for people who use it organically and for businesses. So I think that will have a compounding effect. And then, there's gonna be, you know, several many, I think, new business opportunities that come up. I mean, we have been working on Meta AI for a while. I think you're starting to see some of the way that products like that get monetized across the industry. When we get that to a scale and depth that we want, we think that there are gonna be opportunities both in terms of subscriptions and advertising and all of the different things that you see on that.

I mean, yeah, I think, you know, there's a number of things on shopping and commerce that I'm quite excited about that I alluded to in the comments up front. And as the models launch and we demonstrate some of the capabilities, both in the first set of models and over the year, I think the models are gonna get a lot better too. We'll be able to have different products paired with those that I think will facilitate different businesses for, you know, businesses who use us and our platforms, as well as direct-to-consumer businesses. I guess it's probably also worth flagging because I don't think we, either of us, mentioned the Manus acquisition in the upfront comments.

I think that is going to be a good example of a significant number of businesses that already pay a subscription to basically use their tool to accelerate their business results. Integrating that kind of thing into our Ads and Business Manager, so that way we can just offer more integrated solutions for the, you know, many, many millions of businesses that use and rely on our platforms, is gonna be really powerful, both for accelerating their results using the existing products that we have, and I think adding new lines as well. You know, a somewhat high-level answer, and I think the picture will become clearer and I think more exciting if we do our jobs well over the course of the year.

Brian, on your second question, there's obviously a range of outcomes captured in the Q1 2026 revenue outlook. It overall reflects our expectation for a strong quarter of growth. The range embeds an outlook for accelerated growth, and that's really underpinned by the strong demand that we saw through the end of Q4 and continuing into the start of 2026. Now, I will say we also expect foreign currency to be a 4-point benefit to year-over-year growth, so that is a three-point larger tailwind than it was in Q4 2025, as we lap the strengthening of the U.S. dollar a year ago. But overall, you know, we see that advertisers are responding to ad performance improvements that we made. They're driving strong conversion growth.

We've made a lot of these investments over the course of 2025, including advances to our ads ranking and delivery systems, the more effective redistribution of ad load, new features and ad products like Advantage+, better measurement, and just a lot of great work that has helped to drive the continued performance of our ads.

Your next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.

Thanks so much for taking the question. Maybe two, if I could. In prior periods, you've talked about being capacity constrained internally and not having enough compute to sort of achieve the goals you have on a platform and a product standpoint. I wanna know if we get any update on currently how you think about your own internal needs for compute against that roadmap. And the second part of the question would be: as we continue to see the ads business sorta scale, especially in terms of dollar growth year-over-year, have we yet seen the full first order effects of scaling the business against applying more compute to it? Or how should investors think about the directional relationship between applying more compute and rate of change in terms of outcomes on the monetization side? Thank you.

On your first question, we do continue to be capacity constrained. Our teams have done a great job ramping up our infrastructure through the course of 2025, but demands for compute resources across the company have increased even faster than our supply. So we expect over the course of 2026 to have significantly more capacity this year as we add cloud. But we'll likely still be constrained through much of 2026 until additional capacity from our own facilities comes online later in the year. With that said, I think, you know, we have done a good job internally mitigating the impact of compute constraints on our business. I expect that will continue to be the case in 2026.

We're continuing to focus on increasing our infrastructure efficiency in several ways, including by optimizing workloads, improving infrastructure utilization, diversifying our chip supply, and just investing in efficiency improvements as part of our core technology development efforts in areas like content and ads ranking. So that was your first question. The second question about how the ads business scales. I think I don't have an extremely precise answer to this question. What I'd say is, you know, one of the ways that we are working to drive ads performance improvements is by improving our larger scale models, along with our lighter weight ones that we use for ads inference at runtime. You know, we don't typically use our larger model architectures, like GEM for inference because their size and complexity would make it too cost prohibitive.

So the way that we drive performance from those models is by using them to transfer knowledge to smaller, lightweight models used at runtime. But I would say that we think that there is room for our larger models to benefit from having more compute. And I think as we scale up the compute available to those models, and the foundational models in different areas that power the different stages of ads ranking and recommendation, you know, we expect that we will see gains coming from that.

Your next question comes from the line of Mark Shmulik with Bernstein. Please go ahead.

Yes, thanks for taking the questions, too, if I may. Mark, kind of with your comments that you kind of expect to see some meaningful changes in how work and things are done this year, I guess, would you be surprised if kind of by the end of the year, we've yet to see meaningful progress and adoption on some of the newer products and initiatives that you're launching? Or, you know, should we just be a bit more patient on the timeline here? And then, Susan, kind of with the guidance provided on OI still expected to grow kind of faster this year than last year, you know, let's say in a few months, we realize we need more investment and resources to continue to go after the AI opportunity, but perhaps macro might be a bit weaker.

How hard of a line is there in terms of the tie of investment levels to core performance? Thank you.

I think the first question was asking about kind of when do I expect the product impact to be? I mean, we're going to roll out new products over the course of the year. I think the important thing is we're not just launching one thing and we're building a lot of things. I think there—like, AI is going to enable a lot of new experiences. I outlined thematically a bunch of these in the upfront comments around, you know, a personal AI, around, LLMs combining with the recommendation systems. I think that's a somewhat longer-term research project that I think will yield dividends over a long period of time, but we're already definitely seeing optimizations of the recommendation systems as we're including more of the AI research improvements and advances into that. The content is going to improve.

There are going to be new formats. There are going to be improvements on the glasses. There are all these different things, as well as several new things that we think are new, that we're going to try that are not just extensions of the current things that we're doing. Yeah, I mean, I would expect that we'll roll these out over the course of the year and that you know, sometimes it takes a few iterations for things to really hit and reach the kind of product market fit that you need.

But I think we have enough time, hopefully, to, you know, in the-- we're starting off early enough in the year, that I would expect that we'll see some successes by the end of the year on this, as well as on the work side. What we were talking about is I think it's very hard for anyone exactly to predict what the shape of, you know, how organizations working is going to feel. But it... I just think the fact that agents are really starting to work now is quite profound, and I think is going to allow-- we're already starting to see the people who adopt them are just being significantly more productive.

There's a big delta between the people who do it and do it well, and the people who don't. I think that's going to just be a very profound dynamic for, I think, across the whole sector and probably the whole economy going forward in terms of the productivity and efficiency with which we can run these companies, which I think, you know, my hope is that we can use that to just get a lot more done than we were able to before. I'm most focused on making sure that Meta is a great company to have a big impact, right?

You'll be able to use these kind of agentic tools anywhere, but you will only be able to come and ship things to billions of people if you join a company like Meta, and there aren't that many companies like Meta. So, I think if we make it so that we can harness these kind of tools, then I think that we should, over some period of time, start to see a real acceleration in the amount of output that we could have. Now, how to predict exactly the time frame for adopting that, somewhat hard, right? I'm not going to predict a specific quarter or something like that, but the trend seems like unmistakably like this is going to happen.

And that, to me, is something that is very exciting and, like I said in my comments up front, also, like, honestly, kind of fun, right? I think it just makes it more fun to be able to build a lot of things. And, you know, that's what we're here to do.

Mark, on your second question, I want to make sure and clarify something. So I think in the question, you had said that operating income growth in 2026 would be higher than 2025, and I want to make sure my comments were super clear. In 2026, we expect to deliver operating income above 2025 operating income. So this is comparing absolute dollars, not year-over-year growth. So to give some context on that, you know, we are going into 2026 with strong revenue growth at the start. Of course, we are just a few weeks in, set against, you know, a healthy macro backdrop, so obviously hard to extrapolate the current trends to the full year and, you know, there are many, many moving variables in the current landscape.

We're really taking advantage of the current business strength to reinvest a lot of the revenue into what we see as very attractive investment opportunities in AI infrastructure and talent. It's hard to assess, you know, what all of those investment opportunities will be over the course of the year as we continue to work through our capacity options. And of course, it remains a very competitive hiring market, but we'd like to invest aggressively where we can. We continue to use our framework that we shared at this point, several years ago, of growing consolidated operating profit over time to guide those investments. Based on where our plans are rolling up today, again, in 2026, we expect to deliver more operating income than we did in 2025.

Your next question comes from the line of Doug Anmuth with JPMorgan. Please go ahead.

Thanks so much for taking the questions. One for Mark and one for Susan. Mark, could you just provide more detail on the progress of the MSL team several months in, and more on your view on the path to a frontier model this year? And then, Susan, I know you expect to grow operating income in 2026. Do you also expect to have positive free cash flow? Just how should we think about the current and any future, JVs for data center and compute build-out? Thanks.

... I'm not sure I have anything else to add on the current progress on this. I mean, that's why I said up front that I think this is somewhat of an unfulfilling time to be answering some of these questions. We're about six months in to building MSL. I'm very pleased with the quality of the team. I think we have the most talent-dense research effort in the industry, and some of the early indicators look positive. But look, I think that this is gonna—this is a long-term effort, right? We're not here to do this to ship, like, one model or one product. We're doing a lot of models over time and a lot of different products.

And I wanna make sure that the work can speak for itself, and also that you know we all internalize that this is a journey that we're on, and the first set of things that we put out, I think, are gonna be more about showing the trajectory that we're on, rather than being a single moment in time. So, yeah, I'm quite optimistic, but don't have anything else, you know, particularly concrete to share.

Doug, on the first part of your question, you know, we are making very significant investments in infrastructure capacity this year to support our AI efforts, and we believe we're in a strong position to support them with the cash generation of our business this year. And, you know, at the same time, we'll continue to explore different paths, as we build out our infrastructure capacity that help us provide, you know, that help provide us the long-term flexibility and option value that we look for as we support our future capacity needs against the backdrop of a very wide range of possible capacity demand over the years to come. So we don't have anything additional to announce at this point.

You know, we are looking at, you know, all of the different opportunities to stand up capacity across kind of the different time frames that we need them.

Meta Platforms (META) Q4 2025 Earnings Call Transcript

Company Participants