Meta Platforms (META)
Communication Services · $1.89T market cap · SEC CIK 0001326801
fundamentals score out of 100
Next reports on Oct 27, 2026, after the close, with analysts expecting $6.59 in earnings per share.
The case for META
- Revenue up 27.6% on the year.
- Earns 30% back on shareholder equity.
- Generated $46.1B of free cash flow in FY2025, 23% of revenue.
- 30% of revenue drops through to net profit.
- Has compounded revenue at 18.5% a year over five years.
- Gross margin of 82% absorbs cost shocks.
The case against
- Priced at 27.7× earnings while earnings per share are shrinking (-3.7%).
- Price/sales of 8.3× is higher than 89% of Communication Services companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 38 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 71 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 86 |
| Momentumhow the price has behaved lately | 70 |
| Stabilityhow violently it moves, what it owes and what it pays you | 54 |
- Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.
Key numbers
| Price / earnings | 27.7× |
|---|---|
| Price / book | 5.47× |
| Price / sales | 8.3× |
| Revenue growth (YoY) | +27.6% |
| EPS growth (YoY) | -3.7% |
| Gross margin | 82% |
| Operating margin | 38% |
| Net margin | 30% |
| Return on equity | 30% |
| Debt / equity | 0.32× |
| Current ratio | 2.23 |
| Dividend yield | 0.28% |
| Beta | 1.29 |
| 52-week range | $520.26 – $790.80 |
| Position in that range | 80% of the way up |
| 3-month return | +28.4% |
| 1-year return | -4.8% |
Five years of financials, as filed
Pulled from Meta Platforms's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $201B | $165B | $135B | $117B | $118B |
| Operating income | $83.3B | $69.4B | $46.8B | $28.9B | $46.8B |
| Net income | $60.5B | $62.4B | $39.1B | $23.2B | $39.4B |
| Operating cash flow | $116B | $91.3B | $71.1B | $50.5B | $57.7B |
| Capital expenditure | $69.7B | $37.3B | $27.0B | $31.2B | $18.7B |
| Total assets | $366B | $276B | $230B | $186B | $166B |
| Total liabilities | $149B | $93.4B | $76.5B | $60.0B | $41.1B |
| Shareholder equity | $217B | $183B | $153B | $126B | $125B |
| Cash | $35.9B | $43.9B | $41.9B | $14.7B | $16.6B |
| Long-term debt | $58.7B | $28.8B | $18.4B | $9.9B | $0 |
| Free cash flow | $46.1B | $54.1B | $44.1B | $19.3B | $39.0B |
| Operating margin | 41.4% | 42.2% | 34.7% | 24.8% | 39.6% |
| Net margin | 30.1% | 37.9% | 29.0% | 19.9% | 33.4% |
| Diluted shares | 2.6B | 2.6B | 2.6B | 2.7B | 2.9B |
Share count is down 10.0% over 4 years. Buybacks have been shrinking the pie.
What Meta Platforms says it does
Overview Our mission is to build the future of human connection and the technology that makes it possible. Our products enable people to connect and share through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses. We are innovating in artificial intelligence (AI) technologies to build transformative experiences and capabilities across our Family of Apps and new platforms, and to advance our vision to deliver personal superintelligence for everyone. We build technology that helps people connect and share, find and build communities, and grow businesses. We also help people discover and learn about what is going on in the world around them, enable people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large, and stay connected everywhere by accessing our products. Meta is moving our offerings beyond…
Risk factors META lists in its 10-K
- Risks Related to Our Product Offerings
- Risks Related to Our Business Operations and Financial Results
- Risks Related to Government Regulation and Enforcement
- Risks Related to Data, Security, Platform Integrity, and Intellectual Property
- Risks Related to Ownership of Our Class A Common Stock
- If we fail to retain existing users or add new users, or if our users decrease their level of engagement with our products, our revenue, financial results, and business may be significantly harmed
- We generate substantially all of our revenue from advertising. The loss of marketers, or reduction in spending by marketers, could seriously harm our business
- Our user growth, engagement, and monetization on mobile devices depend upon effective operation with mobile operating systems, networks, technologies, products, and standards that we do not control
- Our new products and changes to existing products could fail to attract or retain users or generate revenue and profits, or otherwise adversely affect our business
- We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results
- We make product and investment decisions that may not prioritize short-term financial results and may not produce the long-term benefits that we expect
- We may not be successful in our Reality Labs strategy and investments, which could adversely affect our business, reputation, or financial results
- If we are not able to maintain and enhance our brands, our ability to maintain or expand our base of users, marketers, and developers may be impaired, and our business and financial results may be harmed
- We may not be able to continue to successfully maintain or grow engaging third-party content on our platform or usage of and engagement with applications that integrate with our products