A visitor stands by a sign posted in front of Meta headquarters on January 29, 2025 in Menlo Park, California.
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Meta's Q4 2025 earnings focus on AI spending and metaverse cutbacks.
Meta's AI investment seen as growth driver despite expenses concerns.
Analysts predict Meta's revenue to exceed estimates, focusing on expenses.

Big Tech earnings are about to kick off in earnest, with Meta Platforms due to report results for the final quarter of 2025 on Wednesday.

Meta stock has been highly volatile over the past year, remaining in the green but lagging behind some of its Magnificent Seven peers. The stock is up about 1% year-to-date and up 7% in the last 12 months.

The social media giant spent 2025 telling investors it would boost capex spending, hyping up its ambitious AI plans. Investors eventually balked at Meta and other tech titans' plans to keep increasing capex. Meta tumbled after its Q3 report, partly on its announcement that it plans to spend more than ever on AI infrastructure going forward.

Meta latest announced it would significantly scale back its metaverse spending, touted by CEO Mark Zuckerberg as the company's future only a few years earlier.

Wall Street is estimating that the Facebook parent will report $58.4 billion in revenue and earnings per share of $8.19.

Here's what analysts say they'll be listening for.

Bank of America

BofA analysts expect Meta to slightly beat estimates, though they remain focused on the company's expense guide for the coming year. The bank has an $810 price target and a buy rating for the stock, implying 21% upside.

"Concerns on '26 expenses have been building for 5 months & we think an expense guide at around 30% 2026 growth could be positive, while at/above 35% a negative," said analyst Justin Post.

He added that his team expects Meta's capex spending to come in between $109 and $114 billion for the year, likely above Wall Street consensus of $110 billion.

Deutsche Bank

Deutsche analysts maintain a buy rating and a bullish price target of $880 for Meta stock, a 31% jump from current levels. But as analyst Benjamin Black notes, heading into the Q4 earnings call, concerns linger about this year's expenses.

That said, his team also predicts that Meta's revenue will come in at $59 billion, just above Wall Street estimates.

"In our view, Meta is positioned favorably — especially in the long-term — as it doubles down on an AI investment cycle," Black said.

Goldman Sachs

Like its peers, Goldman analysts remain focused on Meta's capex plans, which they believe will continue to drive growth into 2026 and beyond. The bank recently raised its spending projections for the company, already above analyst estimates, noting that it sees upward pressure on consensus capex estimates.

"On the next earnings call, we expect investors will be focused on any updates on the work of the Meta Superintelligence Lab, the timing of any foundational model work and/or any strategies with respect to consumer or enterprise utility around AI," Goldman analysts stated.

Rothschild & Co Redburn

Rothschild has a $900 price target for Meta stock, one of the highest on Wall Street. Its target represents a 34% increase from levels on Tuesday. Analyst James Cordwell sees Meta as one of the tech sector's best-positioned companies to capitalize on rising AI demand.

"The recent focus regarding Meta has been dominated by how the company might guide for FY26 operating expenses and capital expenditure," he stated. "The fear is that this is 'Zuckerberg unleashed', with the company's CEO truly back in 'founder mode', pursuing his AI dreams whatever the financial cost."

The analyst added that this has prompted Rothschild to increase its full-year capex projection for Meta to $117.1 billion.

TD Cowen

TD Cowen is bullish on Meta ahead of its Wednesday earnings report, predicting generative AI tools will continue to support growth in its advertising business.

Analyst John Blackedge said he believes ad growth will help bolster its high capex spending.

"Key at the 4Q25 print will be mgmt's '26 capex and opex guides," he said. "We currently expect '26 capex of $125.0BN, up 76% y/y and 14% above consensus alongside '26 opex of $156.1BN, up 32.9% y/y and 7% above consensus."

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Meta's soaring capex is front and center for analysts ahead of the social media giant's Q4 earnings

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