Meta Platforms Inc. has reported impressive fourth-quarter earnings for 2025, exceeding Wall Street forecasts while simultaneously investing heavily in artificial intelligence infrastructure. As the company’s founder Mark Zuckerberg prepares to testify in a significant trial concerning social media addiction, Meta’s financial performance is drawing attention from investors and analysts alike.
Strong Financial Performance
On 28 January 2026, Meta announced a revenue of $59.89 billion for the fourth quarter, surpassing market expectations of $58.59 billion. The firm also reported earnings per share (EPS) of $8.88, well above the anticipated $8.23. Following the earnings release, Meta’s stock surged nearly 10% in after-hours trading, reflecting investor optimism amid the company’s ambitious plans.
Zuckerberg commented on the company’s trajectory: “We had strong business performance in 2025. I’m looking forward to advancing personal superintelligence for people around the world in 2026.” This statement underscores Meta’s commitment to integrating advanced AI technologies into its operations.
Major AI Investments
In 2025, Meta significantly expanded its multibillion-dollar investment in AI, recently securing a deal worth up to $6 billion with Corning to provide fibre optic cables crucial for its data centres. During the earnings call, Zuckerberg highlighted the company’s “major AI acceleration,” emphasising the potential for innovation in product development. “We’re starting to see agents really work,” he stated, indicating a transformative shift in how the company will operate.
Meta is increasingly focusing on the development of superintelligent AI systems tailored to individual user contexts. Zuckerberg explained, “Today, our apps feel like algorithms that recommend content. Soon, you’ll have an AI that understands you and can generate great personalised content for you.”
Shifting Focus from Virtual Reality
As Meta pivots towards AI, its emphasis on virtual reality and the metaverse appears to be waning. Reports indicate that the company has begun layoffs, affecting over 1,000 employees within its Reality Labs division, which represents approximately 10% of its workforce. Zuckerberg anticipates losses from Reality Labs to mirror those of the previous year, which saw a substantial loss of $6.02 billion on $955 million in sales. Future investments in this area will primarily centre around wearables, with Zuckerberg noting a significant increase in sales of Meta’s glasses last year.
Political Scrutiny and PR Efforts
Despite the strong financial report, Meta faces growing political scrutiny regarding the environmental impact of its extensive data centre operations. States like Georgia are leading initiatives to halt the construction of new data centres, aiming to impose stricter regulations on energy consumption and environmental concerns. Maryland and Oklahoma are contemplating similar measures, while Congressional Democrats are investigating the potential transmission of rising utility costs to consumers.
In response, Meta has embarked on an extensive public relations campaign, spending approximately $6.4 million on advertisements in state capitals and Washington, D.C. The messaging aims to portray data centres as beneficial to local economies, claiming that their construction has already led to the creation of 30,000 skilled trade jobs. However, reports suggest that these facilities often create few permanent jobs beyond the initial construction phase.
A Landmark Social Media Trial
In addition to these challenges, Zuckerberg is set to testify in a high-profile trial where Meta and other tech companies are accused of knowingly designing addictive products that harm young users. This trial marks a pivotal moment for the industry, as it shifts from legislative hearings to courtroom scrutiny. Zuckerberg’s previous experience testifying before Congress may not fully prepare him for the rigours of this trial, which features questioning from seasoned prosecutors.
Why it Matters
Meta’s robust earnings and strategic pivot towards AI underscore the company’s resilience in a challenging regulatory landscape. As Zuckerberg prepares for legal challenges and navigates public perception, the outcomes of both the trial and AI investments will significantly influence the future trajectory of the tech giant. The ongoing developments highlight the broader implications for the industry, particularly concerning the balance between technological advancement and social responsibility.
