Meta Platforms Inc. (META) dropped its fourth-quarter earnings after Wednesday's close, and the results were impressive enough to send shares climbing in after-hours trading. The social media giant beat expectations across the board while simultaneously announcing it plans to spend truly eye-watering amounts on AI infrastructure.

The Numbers Tell a Growth Story

Meta posted fourth-quarter revenue of $59.89 billion, comfortably ahead of the $58.30 billion analysts were expecting. Adjusted earnings came in at $8.88 per share, crushing the $8.16 consensus estimate. Total revenue jumped 24% compared to the same quarter last year, showing the company's advertising machine continues to hum along nicely.

The user metrics remained strong too. Family daily active people climbed 7% year-over-year to reach 3.58 billion. Ad impressions surged 18% year-over-year while the average price per ad ticked up 6%, a combination that's music to any advertising platform's ears.

On the cash front, Meta generated $36.21 billion in operating cash flow during the quarter and $14.08 billion in free cash flow. The company closed out the quarter sitting on $35.87 billion in cash and cash equivalents.

"We had strong business performance in 2025. I'm looking forward to advancing personal superintelligence for people around the world in 2026," said Mark Zuckerberg, Meta's founder and CEO.

The Spending Plan That Would Make Other CFOs Faint

Here's where things get interesting. Meta expects full-year 2026 expenses between $162 billion and $169 billion. Capital expenditures are projected to hit $115 billion to $135 billion for the year. That's an enormous amount of money, and it's not going toward fancy office furniture.

The expense growth will be driven by infrastructure costs and employee compensation, particularly as Meta invests heavily in technical talent. The capital expenditure surge ties directly to Meta Superintelligence Labs and core business needs.

But here's the kicker: despite this meaningful step up in infrastructure investment, Meta expects to deliver 2026 operating income above 2025 levels. That's a bold statement considering operating margin in Q4 came in at 41%, down from 48% in the prior year's quarter, as costs and expenses climbed 40% year-over-year to $35.15 billion.

Fourth-quarter capital expenditures, including principal payments on finance leases, totaled $22.14 billion. Headcount stood at 78,865 as of December 31, 2025, up 6% year-over-year.

Looking Ahead

For the first quarter, Meta guided revenue between $53.5 billion and $56.5 billion, significantly above the $51.31 billion analyst consensus. That's a strong signal that the advertising momentum isn't slowing down despite the company's plans to pour resources into AI development.

Meta executives planned to discuss the results in more detail during an earnings call with investors and analysts at 4:30 p.m. ET.

Stock Reaction

Meta shares jumped 4.15% in after-hours trading to $695.91 at the time of publication Wednesday. Investors apparently liked what they saw, deciding that massive AI investments paired with strong revenue guidance equals a winning combination.