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With Meta Platforms scheduled to report its first-quarter results for 2026 on Wednesday, April 29, investors are likely taking a close look at the stock. After a sharp pullback earlier this year as the market weighed strong revenue growth against heavy spending plans, the shares have since rebounded as the earnings date approaches.
Meta’s latest quarterly update highlights the tension between rapid top-line growth and slower profit gains. In the fourth quarter, revenue rose 24% year over year to $59.9 billion. For full-year 2025, revenue increased 22% to more than $200 billion.
Profitability, however, grew more slowly. Fourth-quarter net income rose 9% year over year, while earnings per share increased 11% to $8.88. Operating income increased 6% to $24.7 billion.
The gap between revenue momentum and earnings growth reflects Meta’s large spending push tied to its AI strategy. The company indicated that this spending pressure is expected to persist throughout 2026, with investments ramping further this year.
The primary driver of the profit pressure is Meta’s aggressive buildout of AI infrastructure. In its fourth-quarter earnings release, Meta set 2026 capital expenditures guidance at $115 billion to $135 billion. That compares with $72.2 billion spent in 2025, signaling a shift toward a more capital-intensive model in the near term.
Meta’s management framed the spending as necessary to capture AI-related opportunities. During the fourth-quarter earnings call, CEO Mark Zuckerberg said the company is seeing “a major AI acceleration,” and he expects 2026 to be a year in which that wave accelerates further across multiple fronts.
Zuckerberg added that Meta will continue investing significantly in infrastructure to train leading models and deliver “personal superintelligence” to billions of people and businesses. Management also noted that it expects 2026 operating income to be “above” 2025 levels, a cautious stance that could limit earnings-per-share growth as the investment cycle unfolds.
For investors considering timing around the earnings report, the article notes that Meta shares trade at a price-to-earnings ratio of about 29. While described as not necessarily cheap, the valuation is presented as not overly expensive given Meta’s scale, including more than 3.5 billion daily active users across its apps.
The company’s balance sheet is also cited as supportive. Meta is described as well-capitalized, with about $82 billion in cash and marketable securities, and the ability to sustain heavy investment over multiple years. The article also points to Meta generating significant free cash flow.
Overall, the article characterizes Meta stock as potentially attractive for long-term investors, particularly those who believe the AI investment cycle will translate into growth and monetization. However, it also emphasizes that the risk profile has increased due to the shift toward a more capital-intensive business model.
It highlights that if the economy slows or if AI investments take longer than expected to generate meaningful returns, the stock’s valuation could leave limited room for error. The article concludes that investors should monitor the upcoming earnings report closely to assess how Meta’s spending is affecting both revenue and the bottom line.
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