What you want to know
- Meta reported document quarterly and annual income, topping $59.89 billion in This autumn 2025 and $200.97 billion for the total yr, representing 22% This autumn and 24% YoY development.
- Meta’s household of apps was utilized by 3.58 billion folks on common day by day in December, a rise of seven% year-over-year.
- Actuality Labs posted certainly one of its largest quarters ever, pushed by robust gross sales of Meta Quest 3S and Meta AI glasses.
Zuckerberg additionally highlighted the success of AI glasses. “We predict our glasses are a few of the fastest-growing shopper electronics in historical past.” Meta is predicted to double or triple good glasses manufacturing in 2026 to capitalize on its success and guarantee it stays the market chief, whilst we anticipate Google and Samsung to make huge pushes into the market.
Because of this, Zuckerberg famous that Actuality Labs is directing its investments towards good glasses and wearables “whereas specializing in making Horizon a large success on cellular going ahead, and making VR a worthwhile ecosystem over the approaching years.”
Meta laid off 10% of its Actuality Labs workforce final week, together with most of its in-house recreation improvement studios, with the corporate’s CTO explaining that it’s not finished with VR by any means; it is simply shifting its technique.
Maybe most surprisingly, Meta famous that Actuality Labs’ “losses” in 2026 will stay at 2025 ranges. The corporate will proceed to spend money on AI infrastructure, estimating it would spend between $162 and $169 billion on infrastructure and improvement in 2026.
Android Central’s Take
Seems, VR wasn’t the explanation Meta’s Actuality Labs division spent a lot cash each quarter. Buyers and VR naysayers have highlighted that Meta is “losing billions on the Metaverse” since 2020, however after making substantial cuts to the corporate’s VR technique on the finish of This autumn 2025, Meta says Actuality Labs spending will nonetheless hover round $20 billion in 2026.
What Meta is spending all this cash on is anybody’s finest guess. R&D is not low cost, to make sure, and sustaining funding and infrastructure for a whole gaming ecosystem with hundreds of thousands of avid gamers can also be expensive, however the firm has all the time been secretive about precisely what it spends this cash on and the way environment friendly Actuality Labs is. If something, these strikes and feedback make Actuality Labs even murkier than it already is.
With the large cuts made to Meta’s VR studios in mid-January, the corporate eroded any goodwill it had left amongst many outspoken recreation builders and customers. Provided that these adjustments aren’t even shifting the needle on Actuality Labs’ spending, it makes us surprise how sensible it was for Meta to drag again so harshly and immediately.
