Meta reports 24% rise in ad revenue

Meta Platforms ended the December quarter of 2025 with a sharp acceleration in advertising-led growth, highlighting the continued dominance of ads in its overall business performance.

In the fourth quarter, Meta’s advertising revenue rose 24% year-on-year to $58.14 billion, up from $46.78 billion in the same period last year. Total revenue for the quarter climbed to $59.89 billion from $48.39 billion a year earlier, comfortably surpassing market expectations. For the full year, advertising revenue increased 22% to $196.18 billion, compared with $160.63 billion in 2024.

Advertising continued to contribute more than 97% of Meta’s total revenue across both the quarter and the full year, reaffirming marketer spending across its Family of Apps as the company’s primary growth driver. The performance was supported by higher volumes and improved monetisation, with ad impressions rising 18% year-on-year in the fourth quarter and the average price per ad increasing 6% over the same period.

On a constant currency basis, advertising revenue growth stood at 23% year-on-year, pointing to strong underlying demand rather than currency-driven gains. For 2025, Meta’s Family of Apps generated $198.76 billion in revenue and delivered operating income of $102.47 billion, reinforcing its role as the company’s core profit engine.

Meta reported quarterly earnings of $22.77 billion, or $8.88 per share, compared with $20.84 billion, or $8.02 per share, a year earlier. Looking ahead, the company has guided first-quarter 2026 revenue in the range of $53.5 billion to $56.5 billion, with advertising expected to remain the primary contributor despite rising costs and continued investment in AI infrastructure.