Fb dad or mum firm Meta has released its latest earnings report, and whereas the corporate made many billions of {dollars} in revenue, not each enterprise unit on the know-how large is worthwhile.
The corporate’s Reality Labs division–which contains digital and augmented actuality shopper {hardware}, software program, and content–continued to be a sore spot for Meta. For the quarter that ended on December 31, Reality Labs recorded income of $955 million, down from $1.083 billion throughout the identical interval final yr. Revenue for the quarter was non-existent–Reality Labs posted quarterly lack of $6.021 billion.
For the total yr, Reality Labs pulled in income of $2.207 billion, which was a rise from the earlier yr’s $2.146 billion. Nevertheless, the elevated income didn’t result in elevated revenue. As an alternative, Reality Labs booked a $19.193 billion loss for the total yr, in comparison with a lack of $17.729 billion throughout the earlier yr.
Though Reality Labs continues to be an ongoing miss for Meta, the corporate’s different divisions are placing up robust numbers. Altogether, Meta posted $200.966 billion in income for the total yr, with a revenue of $60.458 billion. Meta ended 2025 with 78,865 workers, up 6% year-over-year.
Trying to the present fiscal yr, Meta mentioned Reality Labs will proceed to lose cash, with working losses anticipated to stay just like what they had been in 2025.
In associated information, Meta not too long ago made drastic cuts to its Reality Labs division, shutting down the studios behind Deadpool VR, Asgard’s Wrath 2, and Resident Evil 4 VR. The corporate additionally is alleged to have canceled a planned sequel to Batman: Arkham Shadow.
Meta’s inventory value, which closed at $668 on January 28, surged by greater than 9% in after-hours buying and selling following the corporate’s outperformance towards its earnings projections. JP Morgan not too long ago raised its price target for Meta stock to $825 based mostly partially on the corporate’s robust income outlook. The corporate is closely investing in synthetic intelligence methods going ahead, saying throughout the earnings briefing that it could spend as much as $135 billion on AI build-out in 2026 alone.