Meta Platforms, Inc. stock research
FY2025 Q4
Meta Platforms (META) Gross Margin — Quarter Ended Dec 31, 2025
Revenue, gross profit, and cost of revenue all increased compared with both the immediately preceding quarter and the same quarter one year earlier. The gross margin weakened slightly relative to the prior quarter but was stable compared with the same quarter last year, reflecting a proportionate change in costs alongside the revenue growth.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue, gross profit, and cost of revenue all increased compared with both the immediately preceding quarter and the same quarter one year earlier. The gross margin weakened slightly relative to the prior quarter but was stable compared with the same quarter last year, reflecting a proportionate change in costs alongside the revenue growth.
- Gross profit expanded in line with revenue, as cost of revenue grew at a similar pace, resulting in a gross margin that was nearly unchanged year over year. The slight sequential decline in margin was due to cost of revenue increasing at a marginally faster rate than revenue from the prior quarter.
- Compared with the immediately preceding quarter, revenue was higher while gross margin was slightly lower. Versus the same quarter one year earlier, revenue was higher and gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.8%
Gross profit
$49.0B
Revenue
$59.9B
Cost of revenue
$10.9B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $42.3B | $34.7B | $7.6B | 82.1% |
| Jun 30, 2025 | $47.5B | $39.0B | $8.5B | 82.1% |
| Sep 30, 2025 | $51.2B | $42.0B | $9.2B | 82.0% |
| Dec 31, 2025 | $59.9B | $49.0B | $10.9B | 81.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.2 pts
Year-over-year change
Dec 31, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit expanded in line with revenue, as cost of revenue grew at a similar pace, resulting in a gross margin that was nearly unchanged year over year. The slight sequential decline in margin was due to cost of revenue increasing at a marginally faster rate than revenue from the prior quarter.
Compared with the immediately preceding quarter, revenue was higher while gross margin was slightly lower. Versus the same quarter one year earlier, revenue was higher and gross margin was stable.
Monitor whether the rate of cost of revenue growth continues to outpace revenue growth rates, as that could further pressure gross margin.