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Meta Platforms Inc. (NASDAQ:META) Surpasses Earnings Expectations

  • Meta Platforms Inc. (NASDAQ:META) reported a strong financial performance with an earnings per share (EPS) of $8.88 and revenue of $59.89 billion, exceeding estimates.
  • The company's advertising revenue saw a significant increase, contributing to the overall growth with $58.14 billion in revenue.
  • Despite a wider loss in the Reality Labs division, Meta's daily active users grew to 3.58 billion, indicating a solid market presence and user engagement.

Meta Platforms Inc. (NASDAQ:META), a leading technology company known for its social media platforms, including Facebook, Instagram, and WhatsApp, focuses on connecting people and building communities through its digital services. Competing with tech giants like Alphabet, Amazon, and Apple in the digital advertising and social media space, Meta has shown remarkable financial performance in its recent earnings report.

On January 28, 2026, Meta reported earnings that showcased a strong financial performance. The company achieved an earnings per share (EPS) of $8.88, surpassing the estimated $8.19. This represents an 11% increase from the previous year. The actual revenue for the period was approximately $59.89 billion, exceeding the estimated $58.33 billion, marking a 24% year-on-year growth.

Meta's impressive earnings are largely driven by a surge in advertising revenue, which rose to $58.14 billion, surpassing the projected $56.79 billion. This growth was supported by an 18% increase in ad impressions and a 6% rise in the average price per ad. The Family of Apps division played a significant role, generating $58.94 billion in revenue, exceeding expectations.

Despite the strong overall performance, Meta's Reality Labs division reported a wider-than-expected loss, with revenue slightly missing estimates at $955 million. However, daily active users across Meta's platforms reached 3.58 billion, reflecting a 7% increase from the previous year. This growth in user base highlights Meta's continued appeal and market reach.

Meta's financial health is further underscored by its valuation metrics. The company has a price-to-earnings (P/E) ratio of approximately 28.76 and a price-to-sales ratio of about 8.90. Its enterprise value to sales ratio is around 9.11, and the enterprise value to operating cash flow ratio is approximately 16.05. With a debt-to-equity ratio of 0.26 and a current ratio of 1.98, Meta demonstrates strong financial stability and short-term financial health.