Meta Platforms, Inc. (META) Income Statement

16Y historyFree accessUpdated daily

Revenue accelerated 28% YoY to $60.8B in Q2 2026, but operating margin compressed to 30.9% from 43.0% a year earlier as R&D surged 68% YoY to $21.7B, reflecting the AI investment phase.

Annual statement

META Income Statement

Meta Platforms, Inc. (META) annual income statement — 16-year revenue, gross profit & net income history

Annual Quarterly

Metric	TTM	Dec'25	Dec'24	Dec'23	Dec'22	Dec'21	Dec'20	Dec'19	Dec'18	Dec'17	Dec'16	Dec'15	Dec'14	Dec'13	Dec'12	Dec'11	Dec'10

Sales/Revenue	241.61B	200.97B	164.5B	134.9B	116.61B	117.93B	85.97B	70.7B	55.84B	40.65B	27.64B	17.93B	12.47B	7.87B	5.09B	3.71B	1.97B
Revenue Growth %	27.53%	22.17%	21.94%	15.69%	-1.12%	37.18%	21.6%	26.61%	37.35%	47.09%	54.16%	43.82%	58.36%	54.69%	37.13%	87.99%	-
Cost of Goods Sold	45.82B	36.17B	30.16B	25.96B	25.25B	22.65B	16.69B	12.77B	9.36B	5.45B	3.79B	2.87B	2.15B	1.88B	1.36B	860M	493M
COGS % of Revenue	-	18%	18.33%	19.24%	21.65%	19.21%	19.42%	18.06%	16.75%	13.42%	13.71%	15.99%	17.27%	23.82%	26.8%	23.17%	24.97%
Gross Profit	195.78B	164.79B	134.34B	108.94B	91.36B	95.28B	69.27B	57.93B	46.48B	35.2B	23.85B	15.06B	10.31B	6B	3.73B	2.85B	1.48B
Gross Margin %	81.03%	82%	81.67%	80.76%	78.35%	80.79%	80.58%	81.94%	83.25%	86.58%	86.29%	84.01%	82.73%	76.18%	73.2%	76.83%	75.03%
Gross Profit Growth %	-	22.67%	23.31%	19.25%	-4.11%	37.54%	19.59%	24.62%	32.06%	47.59%	58.35%	46.04%	71.97%	60.99%	30.66%	92.51%	-
Operating Expenses	116.4B	81.52B	64.96B	62.19B	62.42B	48.53B	36.6B	33.94B	21.57B	15B	11.42B	8.84B	5.32B	3.19B	3.19B	1.09B	449M
OpEx % of Revenue	-	40.56%	39.49%	46.1%	53.53%	41.15%	42.58%	48.01%	38.63%	36.89%	41.33%	49.29%	42.67%	40.56%	62.63%	29.51%	22.75%
Selling, General & Admin	39.86B	24.14B	21.09B	23.71B	27.08B	23.87B	18.16B	20.34B	11.3B	7.24B	5.5B	4.02B	2.65B	1.78B	1.79B	707M	305M
SG&A % of Revenue	-	12.01%	12.82%	17.57%	23.22%	20.24%	21.12%	28.77%	20.23%	17.81%	19.91%	22.42%	21.28%	22.59%	35.13%	19.05%	15.45%
Research & Development	76.55B	57.37B	43.87B	38.48B	35.34B	24.66B	18.45B	13.6B	10.27B	7.75B	5.92B	4.82B	2.67B	1.42B	1.4B	388M	144M
R&D % of Revenue	-	28.55%	26.67%	28.53%	30.3%	20.91%	21.46%	19.24%	18.4%	19.07%	21.42%	26.86%	21.39%	17.98%	27.49%	10.46%	7.29%
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Operating Income	79.38B	83.28B	69.38B	46.75B	28.94B	46.75B	32.67B	23.99B	24.91B	20.2B	12.43B	6.22B	4.99B	2.8B	538M	1.76B	1.03B
Operating Margin %	32.86%	41.44%	42.18%	34.66%	24.82%	39.65%	38.01%	33.93%	44.62%	49.7%	44.96%	34.72%	40.06%	35.62%	10.57%	47.32%	52.28%
Operating Income Growth %	-	20.03%	48.4%	61.52%	-38.09%	43.1%	36.21%	-3.72%	23.31%	62.57%	99.63%	24.65%	78.1%	421.19%	-69.36%	70.16%	-
EBITDA	90.77B	101.89B	84.88B	57.93B	37.63B	54.72B	39.53B	29.73B	29.23B	23.23B	14.77B	8.17B	6.24B	3.81B	1.19B	2.08B	1.17B
EBITDA Margin %	37.57%	50.7%	51.6%	42.94%	32.27%	46.4%	45.99%	42.05%	52.34%	57.14%	53.44%	45.57%	50.03%	48.46%	23.32%	56.02%	59.32%
EBITDA Growth %	-8.83%	20.05%	46.52%	53.94%	-31.23%	38.42%	32.99%	1.71%	25.83%	57.28%	80.77%	30.99%	63.49%	221.4%	-42.91%	77.54%	-
D&A (Non-Cash Add-back)	11.41B	18.62B	15.5B	11.18B	8.69B	7.97B	6.86B	5.74B	4.32B	3.02B	2.34B	1.95B	1.24B	1.01B	649M	323M	139M
EBIT	68.81B	85.93B	71.38B	47.87B	29B	47.31B	32.67B	28.99B	24.91B	20.6B	12.43B	6.22B	4.93B	2.81B	545M	1.74B	1.03B
Net Interest Income	708M	958M	1.8B	1.19B	276M	461M	672M	884M	643M	392M	166M	29M	4M	-37M	-37M	-38M	-21M
Interest Income	2.76B	2.12B	2.52B	1.64B	461M	484M	672M	904M	652M	398M	176M	52M	27M	19M	14M	4M	1M
Interest Expense	2.07B	1.17B	715M	446M	185M	23M	0	20M	9M	6M	10M	23M	23M	56M	51M	42M	22M
Other Income/Expense	-518M	2.66B	1.28B	677M	-125M	531M	509M	826M	448M	391M	91M	-31M	-84M	-50M	-44M	-61M	-24M
Pretax Income	78.86B	85.93B	70.66B	47.43B	28.82B	47.28B	33.18B	24.81B	25.36B	20.59B	12.52B	6.19B	4.91B	2.75B	494M	1.7B	1.01B
Pretax Margin %	32.64%	42.76%	42.96%	35.16%	24.71%	40.1%	38.6%	35.1%	45.42%	50.66%	45.29%	34.55%	39.39%	34.98%	9.71%	45.67%	51.06%
Income Tax	3.61B	25.47B	8.3B	8.33B	5.62B	7.91B	4.03B	6.33B	3.25B	4.66B	2.3B	2.51B	1.97B	1.25B	441M	695M	402M
Effective Tax Rate %	4.58%	29.64%	11.75%	17.56%	19.5%	16.74%	12.16%	25.5%	12.81%	22.63%	18.38%	40.46%	40.12%	45.53%	89.27%	41%	39.88%
Net Income	75.25B	60.46B	62.36B	39.1B	23.2B	39.37B	29.15B	18.48B	22.11B	15.92B	10.19B	3.69B	2.94B	1.49B	53M	1B	372M
Net Margin %	31.15%	30.08%	37.91%	28.98%	19.9%	33.38%	33.9%	26.15%	39.6%	39.16%	36.86%	20.57%	23.58%	18.94%	1.04%	26.95%	18.84%
Net Income Growth %	28.57%	-3.05%	59.5%	68.53%	-41.07%	35.08%	57.67%	-16.4%	38.89%	56.26%	176.25%	25.44%	97.18%	2713.21%	-94.7%	168.82%	-
Net Income (Continuing)	75.25B	60.46B	62.36B	39.1B	23.2B	39.37B	29.15B	18.48B	22.11B	15.93B	10.22B	3.69B	2.94B	1.5B	53M	1B	606M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)	29.25	23.49	23.86	14.87	8.59	13.77	10.09	6.43	7.57	5.39	3.49	1.29	1.10	0.60	0.02	0.43	0.17
EPS Growth %	29.51%	-1.55%	60.46%	73.11%	-37.62%	36.47%	56.92%	-15.06%	40.45%	54.44%	170.54%	17.27%	83.33%	3650%	-96.28%	152.94%	-
EPS (Basic)	-	23.98	24.61	15.19	8.63	13.99	10.22	6.48	7.65	5.49	3.56	1.31	1.12	0.62	0.02	0.44	0.17
Diluted Shares Outstanding	2.57B	2.57B	2.61B	2.63B	2.7B	2.86B	2.89B	2.88B	2.92B	2.96B	2.92B	2.85B	2.66B	2.52B	3.2B	2.35B	2.35B
Basic Shares Outstanding	2.55B	2.52B	2.53B	2.57B	2.69B	2.81B	2.85B	2.85B	2.89B	2.95B	2.92B	2.84B	2.65B	2.5B	3.2B	2.3B	2.3B
Dividend Payout Ratio	-	8.81%	8.13%	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Key Metrics

Growth RegimeAccelerating

ProfitabilityModerate

Balance SheetHealthy

Cash FlowStable

Top Statement Risk

AI capex outpacing monetization

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Revenue Momentum Persists Despite AI Drag

Meta's revenue grew 28% year-over-year in Q2 2026 to $60.8B, according to the latest income statement, marking the fourth consecutive quarter of accelerating growth, though forward guidance suggests a potential deceleration.

The 28% growth in Q2 2026 represents an acceleration from the 21.6% in Q2 2025 and 16.1% in Q1 2025, indicating that the core advertising business continues to benefit from AI-driven ad targeting and increased engagement. However, management's mixed revenue guidance of $61B-$64B for the next quarter implies a sequential slowdown, which may reflect tougher comparables or early signs of ad demand softening. Investors should monitor whether this growth is sustainable as AI-related costs rise.

Gross Margin Stability Masks Operating Pressure

Gross margin remained remarkably stable at 81.4% in Q2 2026, as per the income statement, but operating margin compressed to 30.9% from 43.0% a year earlier, highlighting the impact of surging R&D and SG&A costs.

The 81.4% gross margin is consistent with the 82% range seen over the past two years, reflecting the low marginal cost of delivering ads. However, the operating margin drop of over 12 percentage points year-over-year is driven by a 68% increase in R&D spending (from $12.9B to $21.7B) and a 61% jump in SG&A (from $5.6B to $9.0B). This suggests that Meta is aggressively investing in AI infrastructure and headcount, which may compress margins further if revenue growth decelerates.

Operating Leverage Reverses as Costs Surge

Meta's operating income grew only 8% in Q2 2026 despite 28% revenue growth, based on reported figures, indicating a negative operating leverage as R&D and SG&A expenses outpace gross profit expansion.

In Q2 2026, gross profit increased by 27% year-over-year, but operating income rose just 8% because R&D and SG&A combined grew by 66%. This is a stark reversal from the prior year when operating income grew faster than revenue, reflecting the 'Year of Efficiency' benefits. The current trajectory suggests that Meta is in a heavy investment phase, and investors should watch whether these costs translate into future revenue growth or simply erode margins.

Earnings Volatility Driven by Non-Operating Items

Net income swung from $2.7B in Q3 2025 to $26.8B in Q1 2026, as per the income statement, with EPS fluctuating between $1.05 and $10.44, indicating that reported earnings are heavily influenced by one-time tax benefits and investment gains.

The Q1 2026 net margin of 47.5% is abnormally high compared to the 26-38% range in other quarters, likely due to a one-time tax benefit or gains from equity investments. Conversely, Q3 2025's net margin of 5.3% was depressed, possibly due to a legal settlement or impairment. Excluding these anomalies, the underlying earnings power appears stable, but the volatility complicates valuation and suggests that investors should focus on operating income rather than net income.

R&D Spending Accelerates Beyond Revenue Growth

R&D expenses reached $21.7B in Q2 2026, up 68% year-over-year, according to the income statement, representing 35.7% of revenue, a significant increase from 27.2% a year ago, signaling a strategic pivot toward AI and metaverse investments.

The surge in R&D spending is the primary driver of margin compression, and it appears intentional as Meta invests heavily in AI infrastructure and Reality Labs. SG&A also rose 61% year-over-year, which may indicate increased marketing or administrative costs related to new initiatives. While these investments could enhance long-term competitiveness, they also pose a risk if they do not generate commensurate returns, especially given the high capital intensity of AI.

Q2 2026 Marks Shift to AI Investment Phase

The Q2 2026 quarter stands out as an inflection point, with R&D spending jumping to $21.7B and operating margin dropping to 30.9%, as per the income statement, signaling a transition from efficiency to aggressive AI investment.

Compared to the prior year, R&D as a percentage of revenue rose from 27.2% to 35.7%, and operating margin fell from 43.0% to 30.9%. This inflection suggests that Meta is prioritizing long-term AI leadership over near-term profitability, a strategy that may pressure earnings for several quarters. The lasting impact could be a structurally higher cost base, but also a stronger competitive position if AI investments pay off in ad targeting and new products.

AI Spending Risks Outpacing Monetization

Despite 28% revenue growth, Meta's EPS fell 13.4% year-over-year in Q2 2026 to $6.18, as reported, missing estimates, which may indicate that AI-related costs are growing faster than the revenue they generate.

The EPS miss and the sequential decline in operating margin from 40.6% to 30.9% suggest that the market's concerns about AI capex are justified. If revenue growth decelerates to the guided $61B-$64B range, the operating margin could compress further, potentially leading to a de-rating of the stock. Short-sellers might argue that Meta is over-investing in speculative areas like the metaverse and AI without clear near-term returns, and that the core advertising business is facing saturation.

META — Frequently Asked Questions

Quick answers to the most common questions about buying META stock.

What was Meta Platforms, Inc.'s (META) revenue in 2025?

For fiscal year 2025, Meta Platforms, Inc. (META) reported total revenue of $200.97B. This represents a 10080.6% increase compared to $1.97B in 2010.

Is Meta Platforms, Inc. (META) profitable?

Meta Platforms, Inc. (META) is profitable, generating $60.46B in net income for the fiscal year ending 2025 with a net profit margin of 30.1%.

What is Meta Platforms, Inc.'s operating profit margin?

Meta Platforms, Inc. (META) reported an operating income of $83.28B, resulting in an operating profit margin of 41.4%. This margin reflects the operational efficiency of the business before interest and taxes.

What is Meta Platforms, Inc.'s gross profit and gross margin?

Meta Platforms, Inc. (META) generated $164.79B in gross profit for the year, representing a gross profit margin of 82.0%. This demonstrates the company's core pricing power and production efficiency.