A：In 2026, the expectation is for the wave of AI acceleration to continue to increase across several fronts. The rebuilding of the foundations of the AI program in 2025 is anticipated to lead to the release of new models and products throughout the year, demonstrating the rapid advancement of AI.

A：The vision at Meta for personal superintelligence involves creating AI that understands the unique context of each person, including their history, interests, content, and relationships, to provide highly personalized experiences.

A：AI recommendations are expected to improve by understanding personal goals to curate feeds that help users improve their lives as they desire. This advancement will extend to commerce by enabling users to find specific products they are interested in from businesses, enhancing personal shopping experiences.

A：AI is anticipated to enable the creation of more immersive and interactive media formats, which will significantly alter how people express themselves and experience the world. The vision is for apps to evolve from recommending content to personalizing it with AI that understands and generates content tailored to individual users.

A：Reality Labs is directed to invest heavily in glasses and wearables, aiming for success on mobile and profitability in VR over the coming years. While expecting losses this year to be similar to the previous year, the investments are anticipated to start reducing as the division matures.

A：Meta is focusing on investing in AI and AI-native tooling to enhance productivity and deliver personalized products to billions of people. Additionally, there's an emphasis on infrastructure investments, such as optimizing technology and supply chains, and continuing to develop silicon and energy technologies.

A：To adapt to AI advancements, Meta is investing in AI-native tooling to help individuals be more productive, elevating individual contributors, and扁平化 teams. The company is witnessing how projects that once required large teams can now be completed by a single talented individual.

A：Q4 revenue for the family of apps was $58.9 billion, with a year-over-year increase of 25%, driven by strong user growth and ad load optimizations. The Q4 ad revenue was $58.1 billion, up 24% year over year. Revenue from Reality Labs was $955 million, down 12% year over year. Q4 operating income was $24.7 billion, with a 41% operating margin, and net income was $22.8 billion, or $8.88 per share.

A：Ongoing efforts include increasing the freshness and originality of content recommendations, surfacing over 25% more Reels published that day compared to the prior quarter on Facebook, and a 10 percentage point increase in the prevalence of original content on Instagram in Q4.

A：The focus of Meta's big bets is on developing new model architectures from the ground up that will work on top of LLEDs, leveraging the world knowledge and reasoning capabilities of an AI to better infer people's interests.

A：Meta's AI tools are contributing to revenue growth by enabling features like AI dubbing of videos into local languages, with support for nine different languages and hundreds of millions of people watching AI translated videos daily. Meta's media creation tools also played a role, with nearly 10% of Reels viewed each day being created in Meta's Edits app, up from almost tripling from last quarter. The number of daily actives generating media in Meta AI increased by triple from the previous year in Q4.

A：The strategy behind monetization efficiency involves optimizing the level of ads within organic engagement by tuning systems to deliver ads at the right time and place. Q4 saw efforts to grow the overall level of ad load while preserving user experience, and to drive incremental conversions within the same overall level of ad load, particularly focusing on times when a person is interested in seeing an ad. These efforts resulted in a nearly four times larger revenue impact compared to Facebook ad load increases in the second half of 2025.

A：Investments in ad performance include scaling the complexity and size of models for better ad targeting, adopting new sequence learning model architecture, and developing advanced models for runtime ads inference. These improvements led to a 3.5% lift in Ad clicks on Facebook and a 1% gain in conversions on Instagram in Q4.

A：Meta is continuing to develop and consolidate its AI models by doubling the number of GPUs used to train the GEM model for ads ranking, adopting a new sequence learning model architecture, and consolidating models for Facebook Stories and other surfaces into the overall Facebook model. These efforts drove a 12% increase in ads quality in Q4.

A：The latest developments in ad creative and video generation include a combined revenue run rate of video generation tools reaching $10 billion in Q4 with over three times the growth in incremental conversions for the new model rollout compared to the standard attribution model.

A：The plans for business messaging involve growth across solutions such as click-to-message ads, with revenue in the US up over 50% year over year. Meta is also seeing strong early traction with business AIs in Mexico and the Philippines, with over 1 million weekly conversations. AI is enhancing Meta's products by improving response times, reducing operational costs, and increasing the efficiency of the platforms.

A：The company's approach to capital allocation is to invest in the business to support opportunities and position itself for a new product cycle. Procuring sufficient infrastructure capacity is central to these initiatives, with strategies including chip deployment for varied workloads, extending model innovations, and maintaining long-term flexibility through various strategic partnerships and operational adjustments.

A：The financial outlook for the first quarter of 2026 includes total revenue in the range of $53.5 to $56.5 billion, assuming an approximate 4% tailwind from foreign currency. Full year 2026 total expenses are expected to be in the range of $162 to $169 billion, with infrastructure costs being the major contributor, including third-party cloud spend, depreciation, and higher infrastructure operating expenses.

A：The projected full year 2026 tax rate is expected to be between 13% to 16%.

A：The company expects the recent investments to impact revenue growth in 2026 with the guidance indicating the fastest growth in almost five years. The revenue growth is attributed to improvements in recommendations and monetization efficiency.

A：The key business opportunities mentioned for the upcoming year include improving core products and accelerating the current business by connecting recommendation systems and improving the quality of content and advertising. Additionally, there are new business opportunities arising from Meta AI, and there's excitement around new developments in shopping and commerce. The acquisition of a tool for integrating business results into ads and business manager is also highlighted as a significant opportunity.

A：The revenue growth in 2026 is expected to be driven by the improvements in the recommendation system and the generation of media, which will improve the organic experience and quality of advertising. Additionally, the monetization of new products and businesses resulting from the company's AI efforts is anticipated to contribute to the revenue growth.

A：The company is currently capacity constrained, with demands for compute resources exceeding the supply. The teams have ramped up infrastructure throughout 2025, but constraints persist. The company expects to significantly add cloud capacity in 2026 and mitigate the impact of compute constraints on the business. They are focusing on increasing infrastructure efficiency by optimizing workloads, improving utilization, diversifying chip supply, and investing in efficiency improvements as part of core technology development.

A：To address the scaling of the ads business, the company is working on improving larger scale models while using smaller lightweight models for runtime ads inference. They think there's room for large models to benefit from additional compute. As they scale up the compute available to the models and foundational models that power ad ranking and recommendation, they expect to see performance gains.

A：The company is planning to try and roll out new initiatives that are not just extensions of current practices, with the expectation that these will be successfully integrated and reach product market fit. Successes in this are anticipated by the end of the year.

A：The adoption of agents is expected to significantly increase productivity and create a big performance gap between those who adapt and utilize them effectively and those who do not. This is anticipated to be a profound dynamic affecting productivity and efficiency across the sector and the broader economy.

A：It is critical for Meta to provide tools that can be used by a large number of people because joining a company like Meta, which harnesses these agentic tools, is seen as a way for individuals to have a significant impact. Meta aims to facilitate a situation where the output from these tools can be scaled to billions of people, resulting in a real acceleration in productivity over time.

A：The company expects to deliver operating income above that of 2025, in absolute dollars, for the year 2026. This is based on strong revenue growth at the start of 2026, a healthy macroeconomic backdrop, and the reinvestment of revenue into AI infrastructure and talent.

A：The company is taking advantage of current business strength to reinvest revenue into AI infrastructure and talent, with a focus on attractive investment opportunities. While the specific investment opportunities are still being worked out, and there remains a competitive hiring market, the company plans to invest aggressively where possible. Consolidated operating profit growth over time is the guiding framework for these investments, and it is expected that the company will deliver more operating income in 2026 than in 2025.

A：The company is focused on expanding opportunities beyond ads, although ads are expected to be the most important driver of growth for the next few years. While new ventures are being explored, the company is also investing in AI to improve the quality and performance of core apps and businesses. As these new ventures scale, they are expected to become meaningful over time, but the company remains focused on delivering value to businesses and maintaining ad quality.

A：The company experienced year-over-year growth across all verticals except politics, which was impacted by the lapping of the US presidential election from the previous year. The online commerce vertical was the largest contributor to year-over-year growth, followed by professional services and technology. In online commerce, year-over-year growth was consistent with Q3 levels, driven by broad-based growth across advertiser regions and sizes. Professional services saw strong, broad-based growth with contributions from lead generation ads. The tech vertical also continued to be strong, broad-based across advertiser regions and sizes. Overall, the growth was healthy and broadly driven.

A：The vision for bringing Horizon World into mobile is to provide users with the ability to express themselves and experience the world in increasingly rich formats. This evolution from text to visual to video mediums is seen as ongoing, with the company believing that these formats will continue to grow. The shift towards richer formats of expression and experience was exemplified by the progression from text to photos to videos, and now to more immersive formats that leverage AI and virtual worlds like Horizon.

A：The upcoming trends include formats that are more interactive and immersive, allowing users to easily create worlds or games through prompts and share them with friends. These can be accessed and engaged with directly from feeds on platforms like Horizon, which will support both 3D and 2D versions.

A：AI advances are anticipated to pair well with investments in virtual reality software and platforms like Horizon to bring interactive and immersive content experiences to a large audience through mobile devices.

A：Several ranking improvements were launched in Q4 on Facebook and Instagram, driven by multiple optimizations to recommendation systems. These updates have helped make more accurate predictions about what will be interesting to each person, resulting in incremental engagement.

A：Future plans include scaling up models, using more data, including a longer history of content interactions, validating the use of ad signals for organic content recommendations, making recommendations more adaptive to user engagement during sessions, and incorporating liveness deeper into recommendation systems.

A：The effectiveness of investments in model improvements is measured by using projected ROI to stack rank investments, ensuring a robust measurement system, funding positive ROI initiatives, and tracking performance over the year. The process has been effective, and similar investments are expected to continue driving revenue growth in 2026.

A：The share repurchase program is not a top priority at the moment, with capital allocation focusing on positioning the company as a leader in AI. However, the company will continue to be opportunistic when considering repurchases versus other uses of cash.