Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, reported a profit of $22.8 billion on revenue of nearly $60 billion for the most recent quarter, citing artificial intelligence (AI) and video as key contributors to growth.
Meta said AI played a larger role across its products during the year and is expected to become even more important moving forward.
“2025 was the year we saw AI advance across every facet of Meta’s offerings,” the company said. “We expect 2026 to be a year where this intensifies even further on several fronts and unlocks the ability to build completely new products and transform how we work.”
Following the earnings release, Meta shares rose more than 8% in after-market trading.
The company reported that 3.58 billion people used at least one Meta-owned app daily during the quarter. AI tools were used to improve how content is shown to users, particularly videos.
On Facebook, changes to feed and video ranking in the fourth quarter of 2025 led to a 7% increase in views of organic feed and video posts. Time spent watching videos also grew at a double-digit rate year over year in the United States. Facebook showed more same-day Reels, up more than 25% compared with the previous quarter.
On Instagram, Meta increased the share of original content shown to users in the United States by 10%age points. The company said 75% of recommendations now come from original posts. Threads also saw a 20% increase in time spent after similar changes.
Meta said AI is also improving its advertising tools.
“We’re all-in on using AI to make it easier for businesses to launch and improve their ad campaigns,” the company said.
In the fourth quarter, Meta’s video generation tools reached a combined revenue run rate of $10 billion. Improvements to ad models and computing systems helped raise ad clicks on Facebook by 3.5% and increased conversions on Instagram by more than 1%.