Earnings Preview For Meta Platforms
Meta Platforms (NASDAQ:META) is preparing to release its quarterly earnings on Wednesday, 2026-01-28. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Meta Platforms to report an earnings per share (EPS) of $8.18.
Investors in Meta Platforms are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Past Earnings Performance
The company's EPS beat by $0.59 in the last quarter, leading to a 11.33% drop in the share price on the following day.
Here's a look at Meta Platforms's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 6.66 | 5.87 | 5.28 | 6.76 |
| EPS Actual | 7.25 | 7.14 | 6.43 | 8.02 |
| Price Change % | -11.00 | 11.00 | 4.00 | 2.00 |
Performance of Meta Platforms Shares
Shares of Meta Platforms were trading at $672.36 as of January 26. Over the last 52-week period, shares are down 1.13%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Insights Shared by Analysts on Meta Platforms
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Meta Platforms.
A total of 36 analyst ratings have been received for Meta Platforms, with the consensus rating being Buy. The average one-year price target stands at $858.58, suggesting a potential 27.7% upside.
Comparing Ratings with Competitors
The following analysis focuses on the analyst ratings and average 1-year price targets of Reddit, Pinterest and Snap, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Reddit, with an average 1-year price target of $261.36, suggesting a potential 61.13% downside.
- Analysts currently favor an Outperform trajectory for Pinterest, with an average 1-year price target of $36.09, suggesting a potential 94.63% downside.
- Analysts currently favor an Neutral trajectory for Snap, with an average 1-year price target of $9.83, suggesting a potential 98.54% downside.
Snapshot: Peer Analysis
The peer analysis summary presents essential metrics for Reddit, Pinterest and Snap, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Meta Platforms | Buy | 26.25% | $42.04B | 1.39% |
| Buy | 67.91% | $532.40M | 6.51% | |
| Outperform | 16.79% | $836.88M | 1.91% | |
| Snap | Neutral | 9.78% | $832.62M | -4.82% |
Key Takeaway:
Meta Platforms is positioned in the middle among its peers for revenue growth. It ranks at the bottom for gross profit and return on equity.
All You Need to Know About Meta Platforms
Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.
Meta Platforms's Economic Impact: An Analysis
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Positive Revenue Trend: Examining Meta Platforms's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.25% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: Meta Platforms's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.29% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.39%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Meta Platforms's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.91%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.26, Meta Platforms adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Meta Platforms visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
