Truist Securities has reiterated a Buy rating on Meta Platforms Inc. and assigned an $875.00 price target in the wake of the company's fourth-quarter 2025 financial report. The affirmation follows results that largely exceeded Wall Street expectations on revenue and operating income, while management outlined a substantially higher investment profile for fiscal 2026.
Quarterly performance and margins
Meta posted fourth-quarter revenue growth of 24% year-over-year, beating consensus expectations of 21% and remaining slightly under the 26% increase the company recorded in the third quarter. On a foreign-exchange-neutral basis, growth was 23%, down from 25% in the prior quarter. Ad impressions rose 18% year-over-year, and the average price per ad increased 6%.
The company sustained a strong gross profit margin, registering an impressive 82% over the last twelve months. Operating income for the quarter was $24.7 billion, equal to a 41% operating margin, modestly ahead of consensus estimates of $23.9 billion. Meta's revenue growth measured 21.3% over the last twelve months, with a five-year revenue compound annual growth rate of 18% as reflected in the underlying data.
Daily Active People reached 3.58 billion, up 7% year-over-year, underscoring continued user engagement. Meta's current ratio stood at 1.98, suggesting that liquid assets exceed short-term liabilities by a comfortable margin.
Capital spending and guidance for 2026
Capital expenditures in the quarter totaled $21.4 billion, slightly below Street expectations of $21.8 billion. For fiscal year 2026, Meta set capital expenditure guidance of $115-135 billion, which implies 79% year-over-year growth at the midpoint. The company attributed the higher capex to increased investments in its Meta Superintelligence Labs and its core business.
Alongside capex guidance, Meta provided initial full-year 2026 operating expense guidance of $162-169 billion, representing a 56% year-over-year increase. Despite the elevated spending trajectory, management expects operating income in 2026 to exceed 2025 levels.
For the first quarter of 2026, Meta projected revenues between $53.5 billion and $56.5 billion, surpassing consensus expectations of $51.4 billion and implying approximately 30% year-over-year growth at the midpoint.
Valuation and financial position
Meta is trading with a price-to-earnings ratio of 29.65. Analysts' consensus recommendation remains strongly positive, with a 1.33 score on the scale where 1 denotes Strong Buy. The company's market capitalization was $1.69 trillion, and it operates with a moderate debt profile - a debt-to-equity ratio of 0.26 - leaving it with financial flexibility to support its planned investments.
At a current share price of $668.73, Meta sits below some analysts' high targets of $1,117, reflecting a range of expectations across the sell side.
Wall Street reactions and other analyst views
Goldman Sachs reacted positively to Meta's fourth-quarter results and guidance, maintaining a Buy rating and a $815 price target. Several other firms reiterated constructive stances, including Wolfe Research and Bernstein SocGen Group, which held price targets ranging from $800 to $870, while noting concerns over increased spending on artificial intelligence.
Wolfe Research specifically forecasts 21% year-over-year revenue growth for Meta in 2026, above the broader Street estimate of 18.5% cited in the underlying data.
Other corporate and legal developments noted
In separate corporate news, BofA Securities raised its price target for Corning to $120 from $110 while maintaining a Buy rating after Corning's quarterly results. Corning's revenue modestly exceeded expectations thanks to stronger performance in its Display and Hemlock segments, though it fell short in the Optical segment.
Additionally, a legal matter outside the public-company reporting landscape resolved when TikTok settled a social media addiction lawsuit with a 19-year-old California plaintiff, thereby avoiding one of three so-called bellwether trials related to similar claims against social media platforms.
Summary
Truist Securities kept a Buy rating and $875 price target on Meta after the company reported fourth-quarter 2025 results that beat revenue and operating income estimates, sustained high gross margins, and provided first-quarter revenue guidance above consensus. Management outlined materially higher capital and operating expenditures for 2026 linked to investments in Meta Superintelligence Labs and core operations, while reaffirming expectations for higher operating income year-over-year despite the increased spending.
- Key points
- Meta outperformed consensus on Q4 revenue and operating income and reported an 82% gross profit margin over the last twelve months.
- Management guided Q1 2026 revenue above Street expectations and set substantial FY2026 capex and operating expense ranges tied to investments in Meta Superintelligence Labs and core business.
- Analysts broadly maintained positive ratings and price targets, with some concern noted about higher AI-related spending; Meta remains well capitalized with a market cap of $1.69 trillion and a debt-to-equity ratio of 0.26.
- Risks and uncertainties
- Increased operating and capital expenditures for 2026 - particularly related to Meta Superintelligence Labs - raise execution and return risks for the company and could pressure margins if investments do not generate expected returns; this impacts technology and AI sectors as well as investor sentiment in equity markets.
- Higher spending on artificial intelligence prompted some analyst concern; elevated costs may affect near-term profitability and valuation metrics in the technology and advertising sectors.
- Guidance and forecasts vary across firms, and a notable range exists between some analysts' high targets and current trading levels, which introduces uncertainty for equity investors.
For readers: The company has signaled a strategic shift toward heavier capital deployment in 2026 while providing confidence that operating income should remain higher than the prior year, a balance investors and analysts will be watching closely as the fiscal year unfolds.