Meta Platforms, Inc. (META) AI Stock Analysis

Meta Platforms, Inc. operates through two primary segments: Family of Apps and Reality Labs. The Family of Apps segment encompasses social and messaging platforms including Facebook, Instagram, Messenger, and WhatsApp. Facebook facilitates content sharing and community interaction, Instagram supports visual media sharing and shopping features, Messenger enables direct communications, and WhatsApp provides messaging and secure business transactions. In its Reality Labs segment, Meta Platforms, Inc. develops augmented and virtual reality technologies, including hardware, software, and immersive content designed to advance user connectivity across virtual environments.

Between FY2021 and FY2025, Meta increased annual revenue from $117.93B to $200.97B, generating a 5-year revenue CAGR of 18.5%. Annual revenue grew 22.2% in FY2025, following 21.9% growth in FY2024. Operating margins stood at 41.4% in FY2025 with gross margins reaching 82.0%. Net income reached $60.46B in FY2025, supporting diluted EPS of $29.70. Over the trailing twelve months, revenue was $228.25B with an operating margin of 34.8% and EPS of $26.54. In the latest quarter ended June 30, 2026, revenue increased 28.0% year-over-year, while quarterly earnings declined 13.4%.

As of June 30, 2026, Meta held $90.26B in cash and short-term investments alongside $112.32B in total debt, resulting in net debt of $22.06B. Shareholders' equity was $261.22B, with a debt-to-equity ratio of 0.43 and a current ratio of 2.23. FY2025 operating cash flow reached $115.80B, supporting $46.11B in free cash flow after $69.69B in capital expenditures. Meta directed $26.25B toward share buybacks and paid $5.32B in dividends in FY2025, contributing to an 8.3% share count reduction over 5 years.

Meta trades at a trailing P/E of 26.7x and a forward P/E of 22.1x, compared to the median of its Nasdaq-100 Communication Services peers of 17.1x and 20.2x, respectively. The company's EV to EBITDA multiple is 17.1x, above the peer median of 12.5x, while its price-to-sales multiple of 7.9x is slightly above the peer median of 7.7x. Its PEG ratio is 0.98. Over the past year, Meta returned -0.0% compared to a 16.8% return for the S&P 500, while its 5-year return of 120.5% outpaced the S&P 500 return of 83.0%.

Meta pays a forward annual dividend of $2.10 per share, delivering a dividend yield of 0.30% with quarterly disbursements. The payout ratio stands at 7.1%, and the company has paid dividends for 3 consecutive years. Its most recent ex-dividend date occurred on September 21, 2026.

Meta holds 47 Strong Buy, 8 Buy, 7 Hold, 0 Sell, and 1 Strong Sell ratings from Wall Street analysts. The mean price target of $814.51 implies 14.8% upside compared to the last close of $709.33. For the fiscal year ending December 31, 2026, consensus expectations anticipate EPS of $30.61 on revenue of $254.19B. Meta beat EPS estimates in 3 of the last 4 quarters, with its next earnings announcement scheduled for October 21, 2026.

This page is an AI-written research summary of Meta Platforms, Inc. (META). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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