Meta, Tesla and ServiceNow headline busy earnings day

Big Tech posts solid Q4 results with AI at the center

Meta Platforms, Tesla and Microsoft all reported better‑than‑expected fourth‑quarter earnings per share, underscoring continued strength across major tech names. According to Trading Economics, Meta delivered EPS of $8.88 versus a consensus of $8.19, Microsoft reported EPS of $5.16 compared with expectations of $3.91, and Tesla posted EPS of $0.50 against forecasts of $0.44. The companies are benefiting from resilient demand for digital advertising, cloud services and electric vehicles, even as investors scrutinize rising capital spending tied to artificial intelligence.

Earnings day trading was mixed. A Yahoo Finance recap noted that Meta shares initially traded lower after the release despite the beat, as markets digested an aggressive AI investment plan, before edging higher in late moves. Microsoft’s stock fell after hours even as revenue and profits topped estimates, with commentators pointing to very high expectations heading into the print. Tesla shares rose in aftermarket trading as investors weighed the EPS beat against softer revenue and ongoing margin pressure.

Meta posts record sales and outlines heavier AI investment

Meta said fourth‑quarter 2025 sales were about $60 billion, a year‑over‑year increase of 24%, and guided first‑quarter 2026 revenue to a range of $53.5 billion to $56.5 billion, above the analyst consensus of $51.3 billion. In an interview segment cited by Yahoo Finance, an analyst highlighted that Meta’s adjusted EPS multiple is about 18 times forward GAAP earnings and argued that the stock remains relatively inexpensive given the company’s growth profile.

Meta also sharply increased its capital expenditure plans to support AI infrastructure. For 2026, the company forecast total expenses of $162 billion to $169 billion and capital expenditures of $115 billion to $135 billion, above prior Wall Street expectations of roughly $110.6 billion. Chief executive Mark Zuckerberg said in a separate appearance that 2026 will be a year in which AI “accelerates even further,” describing Meta’s vision of “personal super intelligence” and emphasizing investments in models, recommendation systems, infrastructure, and AI‑enabled glasses and wearables.

Tesla beats on earnings and accelerates shift toward autonomy

Tesla reported that fourth‑quarter 2025 EPS reached $0.50, exceeding market expectations of $0.44, while revenue came in at $33.47 billion, slightly below forecasts. Yahoo Finance commentary noted that the company’s operating income also surpassed estimates. However, revenue was down 3% year over year and Tesla has lost its position as the world’s largest EV maker to China’s BYD, according to separate coverage.

On a post‑earnings webcast transcribed by Yahoo, CEO Elon Musk said Tesla plans to wind down production of the Model S and Model X next quarter. He described the decision as an “honorable discharge” for the programs as the automaker reallocates the Fremont factory space to build Optimus humanoid robots, with a long‑term target of one million units per year from that facility. Musk tied the move to Tesla’s broader push toward an autonomous future, alongside work on robotaxis and Full Self Driving testing in new regions.

ServiceNow reports strong growth and expands capital returns

ServiceNow posted fourth‑quarter 2025 subscription revenue of $3.466 billion, up 21% year over year and 19.5% in constant currency. Total revenue was $3.568 billion, a 20.5% increase. Current remaining performance obligations reached $12.85 billion, up 25% on a reported basis and 21% in constant currency. The company closed 244 transactions with more than $1 million in net new annual contract value and ended the quarter with 603 customers above $5 million in ACV.

GAAP operating income for the quarter was $443 million, or a 12.5% margin, while non‑GAAP operating income was $1.101 billion, representing a 31% margin. Full‑year 2025 non‑GAAP subscription gross margin was 83.5%, and free cash flow margin was 35%. For 2026, ServiceNow guided subscription revenue to $15.53 billion to $15.57 billion, implying 20.5% to 21% growth on a reported basis, and forecast a 36% free cash flow margin. The board authorized an additional $5 billion for share repurchases and the company announced plans for a $2 billion accelerated share repurchase, citing a primary objective of managing dilution.

AI partnerships and financial firms deepen ties with ServiceNow

ServiceNow highlighted a series of AI‑focused partnerships alongside its financial results. The company recently announced expanded collaborations with both Anthropic and OpenAI to integrate their models into the ServiceNow AI Platform and support the development of agentic workflows. It also detailed a new partnership with Microsoft to connect Microsoft Agent 365 with ServiceNow’s platform for AI orchestration and governance.

In financial services, ServiceNow and Fiserv disclosed an expanded strategic commitment. Fiserv plans to deploy Now Assist for Financial Services Operations and IT Service Management in the first quarter of 2026. According to a joint statement, the deployment is intended to embed AI directly into Fiserv’s IT and customer service workflows to identify issues earlier, resolve incidents faster, and support more proactive, resilient operations as transaction volumes and regulatory complexity increase.