Meta vs. Alphabet: Strong 2025 Results, Diverging AI Bets Define 2026 Outlook

Investors weigh Meta’s planned $115–$135 billion 2026 buildout against Alphabet’s $126.8 billion cash buffer.

Overview

Meta reported 2025 revenue of $200.97 billion, up 22%, with a 41% operating margin and $83.28 billion in operating income.
User and ad momentum at Meta continued, with 3.58 billion daily active users, 12% growth in ad impressions, and a 9% increase in average ad price.
Meta’s 2025 capital expenditures reached $72.22 billion as free cash flow decreased to $43.59 billion, and the company guided 2026 capex to $115–$135 billion for AI infrastructure.
Alphabet generated $73.3 billion in 2025 free cash flow and closed the year with $126.8 billion in cash and marketable securities.
In Q4 2025, Google Services revenue rose 14% to $95.5 billion, with search ads up 17% to $63.1 billion and YouTube ads at $11.4 billion, as both stocks held MarketBeat ‘Moderate Buy’ ratings with Alphabet edging Meta in total buy recommendations.