Goldman Sachs on Thursday raised its price objective for Meta Platforms Inc. to $835 from $815 and kept a Buy rating on the shares. The new target implies upside relative to Meta’s most recent trading level of $668.73, although data cited in relation to the update indicate the stock is trading slightly above its fair value.
The bank anchored the change in its outlook to takeaways from Meta’s Q4 2025 earnings report, which Goldman characterized as reflecting two central trends: an acceleration in the core advertising business and ongoing increases in investment directed toward AI capabilities. Separately supplied data within the coverage noted an 82.01% gross profit margin for Meta, highlighting the efficiency of its advertising model.
Goldman pointed to total revenues in Q4 and the company’s guidance for the first quarter as exceeding consensus expectations. The firm described those results as evidence of the scaling benefits of AI in content recommendation and broader shifts in the advertising market driven by AI at scale.
In updating its financial framework for Meta, Goldman now anticipates roughly $166 billion in total GAAP expenses and about $132 billion in total capital expenditures for fiscal year 2026, reflecting continued investments in AI infrastructure.
The bank also lifted its 2026 revenue projection for Meta to approximately $251 billion, which it says represents 25% year-over-year reported growth, or 21% growth when excluding foreign exchange effects. That projection is consistent with Meta’s recent top-line performance, with revenue having grown 21.27% over the last twelve months.
Meta’s market capitalization stood at approximately $1.69 trillion following the results, with a reported price-to-earnings ratio of 29.65.
Meta’s fourth-quarter financials showed revenue and operating income about 3% higher than consensus estimates, and advertising revenue rose 23% year over year on a foreign-exchange-neutral basis despite challenging political comparisons, according to the reporting around the results. The company’s stronger-than-expected performance prompted a number of firms to adjust their price targets.
Among the adjustments, KeyBanc Capital Markets raised its target to $855, citing a constructive revenue growth outlook and the value delivered by AI. Loop Capital reiterated a Buy rating and set a $940 target, highlighting solid performance indicators and a favorable first-quarter outlook. Stifel lifted its target to $820 after revenue exceeded the high end of guidance and indicated a healthy acceleration expected in the first quarter. Evercore ISI set a $900 target, projecting roughly a 25% upside based on its earnings estimates. Canaccord Genuity also raised its target to $930 and maintained a Buy rating, pointing to anticipated growth driven by AI.
Investors and market participants have taken note of the combination of improving advertising dynamics and sizable spending on AI infrastructure, which together shape the current outlook for Meta. The company’s ability to translate AI-driven content recommendation improvements into scalable revenue gains and maintain a high gross margin remains central to analyst forecasts and valuation assessments.
While the consensus among the cited brokerages is bullish, the pricing actions also reflect different views on how rapidly investments in AI will convert into incremental revenue and profit. The updated targets and forecasts offer a range of expectations about Meta’s near-term trajectory and its expense and capital spending profile for fiscal year 2026.