In a significant corporate update, Meta has delivered robust financial performance for the fourth quarter of 2025, surpassing analyst expectations despite substantial expenditures on artificial intelligence infrastructure. The company's founder and CEO, Mark Zuckerberg, addressed these developments during an earnings call, even as he faces impending legal scrutiny over social media addiction allegations.
Financial Performance Exceeds Forecasts
Meta announced revenue of $59.89 billion for the final quarter of 2025, comfortably exceeding Wall Street projections of $58.59 billion. Earnings per share reached $8.88, outperforming the anticipated $8.23. This positive news triggered a nearly 10% surge in Meta's stock during after-hours trading, reflecting investor confidence in the firm's strategic direction.
Zuckerberg's Vision for AI and Personal Superintelligence
Mark Zuckerberg expressed optimism about Meta's business trajectory, stating, "We had strong business performance in 2025." He emphasised a forward-looking agenda, adding, "I'm looking forward to advancing personal superintelligence for people around the world in 2026." This vision aligns with Meta's intensified focus on AI, which Zuckerberg described as a "major AI acceleration" poised to drive innovation in the coming year.
Zuckerberg elaborated on the integration of large language models with existing recommendation systems, suggesting a transformative shift in user experience. "Today, our apps feel like algorithms that recommend content," he noted. "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 personalised content for you."
Substantial AI Investments and Infrastructure Deals
Meta's commitment to AI is underscored by a multibillion-dollar expansion in infrastructure. Recently, the company secured a deal worth up to $6 billion with Corning, a specialist in complex materials for telecoms and electronics, to supply fibre optic cables for its data centres. This partnership highlights the physical scale of Meta's AI ambitions.
Looking ahead to 2026, Meta anticipates expenditures between $162 billion and $169 billion, with the bulk allocated to infrastructure costs and employee compensation, particularly new hires to support AI growth. While some investors have voiced concerns over these high costs amid broader fears of an AI financial bubble, Zuckerberg has consistently argued that such investments will yield long-term profitability.
Strategic Shift Away from the Metaverse
As Meta doubles down on AI, it is gradually moving away from its previous emphasis on virtual reality and the metaverse. Reports indicate that the company has begun laying off over 1,000 employees from its Reality Labs division, representing approximately 10% of that unit. Zuckerberg acknowledged that losses from Reality Labs are expected to mirror last year's figures, with the division reporting a $6.02 billion loss on $955 million in sales.
He clarified that future investment in Reality Labs will primarily concentrate on glasses and wearables, noting that sales of Meta's glasses more than tripled in the previous year. This pivot reflects a strategic realignment towards more immediate technological priorities.
Political and Environmental Scrutiny of Data Centres
The rapid expansion of AI data centres has attracted political attention due to concerns over energy consumption and environmental impact. Several U.S. states, including Georgia, Maryland, and Oklahoma, are considering legislative measures to regulate or temporarily halt the construction of new data centres. In Congress, Democrats are investigating reports that major tech firms are passing rising utility costs onto consumers.
In response, Meta has launched a public relations campaign to highlight the economic benefits of data centres. According to a New York Times report, the company spent $6.4 million on advertisements in November and December, promoting job creation in local communities. Meta claims its data centres have supported 30,000 skilled trade jobs during construction and 5,000 operational roles, though the geographic scope of these figures remains unclear.
Landmark Social Media Addiction Trial
Amid these financial and strategic developments, Mark Zuckerberg has been ordered to testify in a high-profile trial alleging that social media platforms, including Meta's, are intentionally addictive and harmful to young people. This case marks the first instance where tech executives must address such claims in open court, potentially subjecting Zuckerberg to rigorous questioning from prosecutors, distinct from his previous congressional testimonies.
Zuckerberg did not comment on the trial during the earnings call, but its timing adds a layer of complexity to Meta's current narrative of growth and innovation.
Overall, Meta's latest earnings report illustrates a company navigating significant investments in AI while contending with legal challenges and shifting public perceptions. As Zuckerberg steers the firm towards a future centred on personal superintelligence, the balance between technological ambition and corporate responsibility remains a critical theme for stakeholders.
