Advertising Growth Continues, Profitability Under Pressure

Meta Platforms recorded 2025 annual revenue of $200.966B (+22% YoY vs. $164.5B). Advertising business continues driving results, but increased costs and tax burden expansion created profitability pressure -- net income decreased slightly. FY2025 annual: revenue $200.966B (+22%); operating income $83.276B (+20%); net income $60.458B (-3% YoY). Revenue and operating income both grew while net income decreased -- primarily due to corporate tax expense surge. Q4 2025: revenue $59.893B (+24% YoY); ad impressions +18%, average ad price +6%; operating income $24.745B (+6%); operating margin 41% (vs. 48% prior year); costs $35.148B (+40%). Annual cost structure: total costs $117.69B (+24% YoY); R&D $57.372B; COGS $36.175B; Capex $72.22B (AI infrastructure and data center expansion). Net income reduction cause: corporate tax $25.474B (+207% YoY); "One Big Beautiful Bill Act" (July 2025) implementation resulted in $15.9B one-time non-cash expense; excluding this item, effective tax rate approximately 13% -- consistent with historical levels. Net income reduction is accounting adjustment from large-scale tax reform rather than actual business performance deterioration. 2026 Capex guidance: $60-65B -- continued massive AI infrastructure investment.