META
Meta Platforms, Inc.
Communication Services · Internet Content & Information · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Near-perfect profitability and financial health scores anchor the composite, reflecting a 41.4% operating margin, 30.1% net margin, and a debt-to-equity ratio of just 0.27.
- A mid-range growth score reflects the tension between strong 22.2% revenue growth and declining net income and EPS, preventing a higher overall ranking.
- The dividend factor contributed positively given an established and growing dividend program with a very conservative 8.8% payout ratio, supporting the Dividend Candidate label.
Why Not Higher
- Net income declined 3.1% and diluted EPS fell 1.6% in FY2025 despite strong revenue growth, capping the growth score and limiting the composite.
- Momentum was penalized by an erratic net income trajectory — including a sharp drop to $2,709,000,000 in 2025Q3 — and a sequential revenue pullback in 2026Q1.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $164,501,000,000 to FY2025's $200,966,000,000, a gain of +22.2%. However, net income declined -3.1% from FY2024 to FY2025, and diluted EPS fell -1.6% over the same period.
The model appears to have balanced strong top-line expansion against bottom-line contraction: the robust revenue growth was offset by declining net income and EPS, resulting in a mid-range growth score rather than a high one.
In FY2025, Meta reported an operating margin of 41.4%, a net margin of 30.1%, and a return on assets of 16.5%.
These metrics reflect exceptional capital efficiency and earnings power; the model rewarded the combination of a very high operating margin, a substantial net margin, and a strong return on assets with a perfect profitability score.
In FY2025, Meta carried a debt-to-equity ratio of 0.27, an interest coverage ratio of 76.4, and total assets of $366,021,000,000.
The model rewarded a very low leverage ratio and an exceptionally high interest coverage ratio, indicating that operating income dwarfs interest obligations by a wide margin, while the large asset base further supports a near-perfect financial health score.
Quarterly revenue rose from $47,516,000,000 in 2025Q2 to $59,894,000,000 in 2025Q4 before pulling back to $56,311,000,000 in 2026Q1. Net income was highly uneven, dropping sharply to $2,709,000,000 in 2025Q3 before rebounding to $26,773,000,000 in 2026Q1, while operating income remained more stable, ranging from $20,441,000,000 in 2025Q2 to $24,745,000,000 in 2025Q4 then easing to $22,872,000,000 in 2026Q1.
The model likely penalized the erratic net income trajectory and the sequential revenue pullback in 2026Q1, tempering what would otherwise be a stronger momentum signal from the generally rising revenue and operating income trend.
Meta paid dividends per share of $2.00 in FY2024 and $2.10 in FY2025, with a dividend payout ratio of 8.8% of net income in FY2025.
The model recognized an established and growing dividend alongside a very conservative payout ratio, suggesting ample room for future increases; the score reflects the presence of a dividend program rather than a high yield or aggressive distribution policy.
Meta has been assigned the macro theme of AI Infrastructure.
Although Meta carries the AI Infrastructure theme assignment, this designation did not translate into score under the model's current methodology, suggesting the scoring criteria for this theme were not met or weighted in a way that produced points at this time.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Meta Platforms delivered exceptional profitability in FY2025, with an operating margin of 41.4% and a net margin of 30.1%, supported by 22.2% year-over-year revenue growth to $200,966,000,000. However, net income declined 3.1% and diluted EPS fell 1.6% over the same period, tempering the overall growth picture. The company maintains a very strong balance sheet with a debt-to-equity ratio of 0.27 and interest coverage of 76.4x, and has established a growing dividend program with a conservative 8.8% payout ratio. Quarterly momentum showed some unevenness, including an erratic net income trajectory and a sequential revenue pullback in 2026Q1, which moderated the composite score.
Plain English
Meta is a highly profitable company that grew its revenue strongly but saw its bottom-line earnings dip slightly, carries very little debt, and just started paying a small but growing dividend — making it a financially solid but not perfectly accelerating business right now.
Bull Case vs. Bear Case
Bull Case
- Exceptional profitability: Meta posted a 41.4% operating margin and 30.1% net margin in FY2025, reflecting outstanding capital efficiency and earnings power.
- Rock-solid balance sheet: A debt-to-equity ratio of just 0.27 and an interest coverage ratio of 76.4x mean the company's operating income dwarfs its debt obligations by a wide margin.
- Growing dividend with room to expand: Meta raised dividends per share from $2.00 in FY2024 to $2.10 in FY2025, with a payout ratio of only 8.8%, leaving substantial capacity for future increases.
Bear Case
- Bottom-line contraction despite top-line growth: Even as revenue surged 22.2%, net income fell 3.1% and diluted EPS declined 1.6% in FY2025, signaling rising costs eating into profits.
- Erratic quarterly earnings: Net income swung sharply, dropping to $2,709,000,000 in 2025Q3 before rebounding, suggesting unpredictable short-term profitability.
- Sequential revenue pullback: Quarterly revenue declined from $59,894,000,000 in 2025Q4 to $56,311,000,000 in 2026Q1, introducing uncertainty about near-term momentum.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in net income and a return to sequential quarterly revenue growth would signal that the cost pressures weighing on earnings are easing.
- An acceleration in dividend growth beyond the current modest pace would reinforce the dividend candidate thesis and attract income-focused investors.
Bearish Triggers
- If operating margins begin to compress meaningfully from the current 41.4% level, it would suggest the cost base is growing faster than revenue, undermining the profitability story.
- A continuation of the erratic net income pattern seen in 2025Q3 would raise concerns about earnings quality and predictability.
Risk Profile
Low RiskMeta's financial health is very strong, with a debt-to-equity ratio of 0.27 and interest coverage of 76.4x, indicating minimal balance sheet risk. The primary near-term concern is operational volatility, as evidenced by the sharp quarterly swings in net income and the sequential revenue decline in 2026Q1.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.