Meta Platforms wrapped up Q4 2025 with a record $58.1 billion in advertising revenue, marking a 24% increase year over year. The growth comes amid surging holiday ad demand and continued investment in artificial intelligence to optimize campaign performance. CEO Mark Zuckerberg highlighted that 2026 will accelerate AI integration across the business, noting that some teams have been “flattened” as projects become more AI-driven.

Advertising impressions grew 18% YoY, with average ad prices increasing 6%, reflecting strong demand from marketers seeking visibility during the holiday season. Meta also expanded its AI infrastructure, doubling the number of GPUs supporting its Generative Ads Recommendation Model. CFO Susan Li reported this contributed to a 3% increase in clicks on Facebook ads and a 1% rise in Instagram conversions.

AI-powered video generation tools also gained traction, achieving a $10 billion revenue run rate in Q4 — growing nearly three times faster than overall ad revenue. These tools allow advertisers to experiment with content creation and personalization at scale, although Meta cautions that complex AI applications are still emerging and resource-intensive.

While AI promises long-term efficiency, capital expenditures reached $22.14 billion in Q4 and $72.22 billion for 2025, with projected 2026 spending between $115 billion and $135 billion, mostly for AI development. Meta continues to refine ad ranking and learning models to better target highly specific audiences while exploring agentic shopping tools for personalized product recommendations.

The company emphasizes that advertising remains the primary driver of growth, even as AI capabilities evolve to support leaner workflows and more innovative applications. Meta is positioning itself as a leader in AI-powered advertising while maintaining the scale and reach required for its core business.

Read more: Marketing Dive