Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Meta Platforms Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The financial data exhibits a distinct cyclical trend in profitability, characterized by a period of contraction through early 2023, a strong recovery phase peaking in mid-2025, and a subsequent moderate decline heading into mid-2026. While gross profitability remained relatively resilient throughout the period, operational efficiency and bottom-line returns experienced significant volatility.
- Gross Profit Margin
- Gross margins demonstrated high stability, maintaining a range between 78.34% and 82.00%. A slight dip occurred in late 2022 and early 2023, followed by a steady upward trajectory that peaked at 82.00% in the third and fourth quarters of 2025. The period concluded with a marginal decrease to 81.75% by June 30, 2026, indicating a consistent ability to manage direct costs relative to revenue.
- Operating and Net Profit Margins
- A significant contraction is observed from March 31, 2022, to March 31, 2023, with the operating margin falling from 36.68% to 23.56% and the net profit margin dropping from 31.20% to 18.27%. This downward trend reversed sharply throughout 2023 and 2024, suggesting a period of aggressive cost optimization or revenue growth. Operating margins reached a peak of 44.02% in June 2025, while net margins peaked at 39.99% in the same period. However, both metrics trended downward in the final year, with the operating margin closing at 38.08% and the net margin at 29.84% by June 30, 2026.
- Return on Equity (ROE)
- ROE mirrored the volatility of the net profit margins. After a decline from 30.30% in early 2022 to a low of 16.82% in June 2023, the ratio surged to a high of 36.66% by June 2025. This indicates a strong recovery in the return generated on shareholders' equity. The trend reversed in the latter part of the period, ending at 26.07% in June 2026.
- Return on Assets (ROA)
- Asset utilization followed a similar pattern of contraction and expansion. ROA fell from 22.74% in March 2022 to a trough of 10.91% in June 2023. A recovery phase ensued, bringing the ratio back to 24.26% by June 2025. A subsequent decline is noted through 2026, with the ratio ending at 15.13%, reflecting a reduction in the efficiency of asset employment to generate profit.
Overall, the analysis indicates that while the core product profitability remained stable, the company's overall profitability and efficiency were heavily influenced by operational fluctuations. The strong expansion observed between 2023 and 2025 was followed by a contraction in all return and margin metrics through the first half of 2026.
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Return on Sales
Return on Investment
Gross Profit Margin
Meta Platforms Inc., gross profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Gross profit | 49,471) | 46,093) | 48,988) | 42,036) | 39,025) | 34,742) | 39,548) | 33,214) | 31,763) | 29,815) | 32,416) | 27,936) | 26,054) | 22,537) | 23,829) | 21,998) | 23,630) | 21,903) | ||||||
| Revenue | 60,801) | 56,311) | 59,894) | 51,242) | 47,516) | 42,314) | 48,386) | 40,589) | 39,071) | 36,455) | 40,112) | 34,146) | 31,999) | 28,645) | 32,165) | 27,714) | 28,822) | 27,908) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Gross profit margin1 | 81.75% | 81.94% | 82.00% | 82.00% | 81.95% | 81.75% | 81.67% | 81.43% | 81.40% | 81.44% | 80.76% | 79.05% | 78.34% | 78.40% | 78.35% | 80.31% | 80.47% | 80.34% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 60.90% | 60.37% | 59.65% | 59.17% | 58.94% | 58.59% | 58.20% | 57.84% | 57.35% | 57.12% | 56.63% | 55.88% | 55.44% | 55.30% | 55.38% | 56.10% | 56.74% | 56.93% | ||||||
| Comcast Corp. | 69.39% | 70.13% | 71.75% | 71.88% | 70.82% | 70.36% | 70.08% | 69.73% | 70.53% | 70.00% | 69.76% | 69.96% | 69.65% | 69.49% | 68.53% | 68.41% | 67.34% | 66.64% | ||||||
| Netflix Inc. | 49.12% | 49.03% | 48.49% | 48.09% | 48.49% | 46.92% | 46.06% | 45.25% | 43.84% | 43.06% | 41.54% | 39.49% | 38.77% | 38.30% | 39.37% | 39.62% | 40.63% | 41.62% | ||||||
| Trade Desk Inc. | — | 77.83% | 78.63% | 78.81% | 79.41% | 80.11% | 80.69% | 81.06% | 81.23% | 81.29% | 81.21% | 81.18% | 81.46% | 81.64% | 82.18% | 81.90% | 81.88% | 81.82% | ||||||
| Walt Disney Co. | 37.16% | 37.28% | 37.76% | 37.61% | 37.10% | 36.74% | 35.75% | 35.36% | 35.03% | 34.33% | 33.41% | 32.77% | 33.04% | 33.40% | 34.24% | 34.43% | 33.79% | 34.34% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Gross profit margin = 100
× (Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × (49,471 + 46,093 + 48,988 + 42,036)
÷ (60,801 + 56,311 + 59,894 + 51,242)
= 81.75%
2 Click competitor name to see calculations.
The financial performance exhibits a strong correlation between revenue growth and gross profit expansion, characterized by an overall upward trajectory in operational efficiency. While revenue grew from approximately $27.9 billion in March 2022 to over $60.8 billion by June 2026, the gross profit margin experienced a cycle of temporary contraction followed by a sustained recovery and optimization phase.
- Margin Contraction and Stabilization
- A period of margin compression occurred between December 2022 and June 2023, during which the gross profit margin declined from 80.31% in September 2022 to a trough of 78.34% in June 2023. This trend indicates a temporary increase in the cost of revenue relative to total sales during the latter half of 2022 and the first half of 2023.
- Recovery and Expansion Phase
- A consistent recovery trend is observed beginning in September 2023, where the margin rose to 79.05% and continued a steady ascent through 2024. By December 2024, the margin reached 81.67%, surpassing the levels recorded in early 2022. This phase reflects an improvement in the cost structure and a successful scaling of revenue without a proportional increase in direct costs.
- Peak Performance and Long-term Plateau
- Profitability reached its peak between June 2025 and December 2025, maintaining a ceiling of 82.00%. Toward the end of the analyzed period, a marginal decline is noted, with the margin adjusting to 81.75% by June 2026. This suggests a stabilization of gross margins as the company achieves a mature state of operational efficiency relative to its expanded revenue base.
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Operating Profit Margin
Meta Platforms Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Income from operations | 18,775) | 22,872) | 24,745) | 20,535) | 20,441) | 17,555) | 23,365) | 17,350) | 14,847) | 13,818) | 16,384) | 13,748) | 9,392) | 7,227) | 6,398) | 5,664) | 8,358) | 8,524) | ||||||
| Revenue | 60,801) | 56,311) | 59,894) | 51,242) | 47,516) | 42,314) | 48,386) | 40,589) | 39,071) | 36,455) | 40,112) | 34,146) | 31,999) | 28,645) | 32,165) | 27,714) | 28,822) | 27,908) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | 38.08% | 41.21% | 41.44% | 43.23% | 44.02% | 42.92% | 42.18% | 39.94% | 39.25% | 37.38% | 34.66% | 28.96% | 23.80% | 23.56% | 24.82% | 29.74% | 33.41% | 36.68% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 33.11% | 32.69% | 32.03% | 32.19% | 32.68% | 32.67% | 32.11% | 30.93% | 29.83% | 29.03% | 27.42% | 26.51% | 25.75% | 25.35% | 26.46% | 27.85% | 29.65% | 30.47% | ||||||
| Comcast Corp. | 14.66% | 15.29% | 16.71% | 17.98% | 18.12% | 18.73% | 18.83% | 18.52% | 19.32% | 19.25% | 19.18% | 19.33% | 11.99% | 11.75% | 11.56% | 11.82% | 18.25% | 17.76% | ||||||
| Netflix Inc. | 29.68% | 29.72% | 29.49% | 29.14% | 29.51% | 27.71% | 26.71% | 25.65% | 23.82% | 22.54% | 20.62% | 18.35% | 17.51% | 16.85% | 17.82% | 18.16% | 19.13% | 20.41% | ||||||
| Trade Desk Inc. | — | 20.26% | 20.35% | 18.91% | 17.73% | 17.63% | 17.47% | 16.29% | 14.05% | 12.29% | 10.30% | 8.53% | 8.50% | 6.53% | 7.20% | -0.80% | 2.86% | 7.74% | ||||||
| Walt Disney Co. | 13.47% | 13.53% | 13.78% | 12.69% | 12.64% | 10.07% | 9.11% | 9.08% | 5.40% | 6.87% | 5.74% | 5.22% | 8.02% | 7.42% | 7.90% | 8.01% | 7.08% | 6.93% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Operating profit margin = 100
× (Income from operationsQ2 2026
+ Income from operationsQ1 2026
+ Income from operationsQ4 2025
+ Income from operationsQ3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × (18,775 + 22,872 + 24,745 + 20,535)
÷ (60,801 + 56,311 + 59,894 + 51,242)
= 38.08%
2 Click competitor name to see calculations.
The operating performance of the company exhibits three distinct phases: an initial period of margin compression, a phase of aggressive profitability recovery, and a subsequent period of stabilization followed by a recent downturn. Revenue demonstrated a strong long-term growth trajectory, increasing from $27.9 billion in March 2022 to $60.8 billion by June 2026.
- Margin Compression Phase (March 2022 – March 2023)
- A consistent downward trend in profitability is observed during this period, with the operating profit margin declining from 36.68% to a low of 23.56%. While revenue remained relatively stable, income from operations decreased from $8.5 billion to $7.2 billion, indicating a period of rising operating expenses relative to income growth.
- Profitability Recovery and Expansion (June 2023 – December 2024)
- A sharp reversal in the margin trend occurred starting in mid-2023. The operating profit margin climbed steadily from 23.80% in June 2023 to 42.18% by December 2024. This expansion was driven by operating income growing at a significantly faster rate than revenue, with income from operations rising from $9.4 billion to $23.4 billion during this window.
- Stabilization and Recent Contraction (March 2025 – June 2026)
- Profitability reached a peak of 44.02% in June 2025. Following this peak, margins remained high but began a gradual descent, maintaining levels above 41% through March 2026. A more pronounced contraction is observed in the final reported quarter ending June 2026, where the operating profit margin fell to 38.08%, despite revenue reaching its period high of $60.8 billion.
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Net Profit Margin
Meta Platforms Inc., net profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income | 15,848) | 26,773) | 22,768) | 2,709) | 18,337) | 16,644) | 20,838) | 15,688) | 13,465) | 12,369) | 14,018) | 11,583) | 7,788) | 5,709) | 4,653) | 4,395) | 6,687) | 7,465) | ||||||
| Revenue | 60,801) | 56,311) | 59,894) | 51,242) | 47,516) | 42,314) | 48,386) | 40,589) | 39,071) | 36,455) | 40,112) | 34,146) | 31,999) | 28,645) | 32,165) | 27,714) | 28,822) | 27,908) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | 29.84% | 32.84% | 30.08% | 30.89% | 39.99% | 39.11% | 37.91% | 35.55% | 34.34% | 32.06% | 28.98% | 23.42% | 18.71% | 18.27% | 19.90% | 24.41% | 28.16% | 31.20% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 54.77% | 37.92% | 32.81% | 32.23% | 31.12% | 30.86% | 28.60% | 27.74% | 26.70% | 25.90% | 24.01% | 22.46% | 21.05% | 20.58% | 21.20% | 23.75% | 25.89% | 27.57% | ||||||
| Comcast Corp. | 8.97% | 15.00% | 16.17% | 18.33% | 18.44% | 12.71% | 13.09% | 11.92% | 12.46% | 12.64% | 12.66% | 12.53% | 5.40% | 4.71% | 4.42% | 4.46% | 11.54% | 11.96% | ||||||
| Netflix Inc. | 28.22% | 28.52% | 24.30% | 24.05% | 24.58% | 23.07% | 22.34% | 20.70% | 19.54% | 18.42% | 16.04% | 13.82% | 13.22% | 13.16% | 14.21% | 16.03% | 16.42% | 16.47% | ||||||
| Trade Desk Inc. | — | 14.57% | 15.31% | 15.72% | 15.57% | 16.04% | 16.08% | 13.34% | 11.65% | 9.80% | 9.19% | 8.35% | 7.46% | 4.70% | 3.38% | -0.66% | 2.43% | 7.78% | ||||||
| Walt Disney Co. | 11.54% | 12.80% | 13.14% | 12.22% | 9.47% | 6.07% | 5.44% | 5.31% | 1.90% | 3.36% | 2.65% | 2.56% | 4.74% | 3.93% | 3.80% | 3.87% | 3.46% | 4.22% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Net profit margin = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
= 100 × (15,848 + 26,773 + 22,768 + 2,709)
÷ (60,801 + 56,311 + 59,894 + 51,242)
= 29.84%
2 Click competitor name to see calculations.
The net profit margin exhibits a cyclical trajectory over the analyzed period, characterized by an initial contraction, a sustained recovery phase, and a subsequent period of volatility and stabilization.
- Initial Margin Contraction (March 2022 – March 2023)
- A consistent downward trend is observed during the first year of the period. The net profit margin declined from 31.20% in March 2022 to a trough of 18.27% by March 2023. This decline occurred despite relatively stable revenue, indicating an increase in operating expenses or other costs relative to income generation.
- Profitability Expansion and Peak (June 2023 – June 2025)
- A strong recovery phase began in June 2023, with the net profit margin climbing steadily for two consecutive years. This growth trajectory saw margins surpass previous levels, reaching a peak of 39.99% in June 2025. This period is marked by net income growth that significantly outpaced revenue growth, suggesting enhanced operational efficiency and cost optimization.
- Recent Volatility and Stabilization (September 2025 – June 2026)
- Following the peak in mid-2025, a notable correction occurred. The net profit margin dropped to 30.89% in September 2025 and further to 30.08% in December 2025, despite revenue reaching record highs. While a brief recovery to 32.84% was noted in March 2026, the margin settled at 29.84% by June 2026, indicating a return to a more moderate profitability baseline.
Overall, the data reveals a significant capacity for margin expansion, with the company successfully recovering from a period of diminished profitability to reach higher efficiency peaks before stabilizing in the 29% to 33% range.
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Return on Equity (ROE)
Meta Platforms Inc., ROE calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income | 15,848) | 26,773) | 22,768) | 2,709) | 18,337) | 16,644) | 20,838) | 15,688) | 13,465) | 12,369) | 14,018) | 11,583) | 7,788) | 5,709) | 4,653) | 4,395) | 6,687) | 7,465) | ||||||
| Stockholders’ equity | 261,221) | 243,681) | 217,243) | 194,066) | 195,070) | 185,029) | 182,637) | 164,529) | 156,763) | 149,529) | 153,168) | 142,873) | 134,033) | 124,795) | 125,713) | 124,094) | 125,767) | 123,228) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | 26.07% | 28.97% | 27.83% | 30.16% | 36.66% | 36.01% | 34.14% | 33.76% | 32.81% | 30.60% | 25.53% | 20.81% | 16.82% | 17.18% | 18.45% | 23.23% | 26.74% | 30.30% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 38.13% | 33.46% | 31.83% | 32.12% | 31.85% | 32.15% | 30.80% | 30.01% | 29.15% | 28.14% | 26.04% | 24.43% | 22.82% | 22.46% | 23.41% | 26.41% | 28.20% | 29.35% | ||||||
| Comcast Corp. | 12.48% | 21.29% | 20.64% | 23.29% | 23.65% | 18.13% | 18.92% | 17.11% | 18.14% | 18.67% | 18.61% | 18.34% | 7.74% | 6.86% | 6.63% | 6.73% | 15.35% | 15.18% | ||||||
| Netflix Inc. | 45.27% | 42.97% | 41.26% | 40.19% | 41.07% | 38.58% | 35.21% | 34.25% | 32.08% | 30.12% | 26.27% | 20.47% | 18.60% | 19.24% | 21.62% | 24.57% | 26.71% | 28.54% | ||||||
| Trade Desk Inc. | — | 17.63% | 17.84% | 16.86% | 15.48% | 15.17% | 13.33% | 11.74% | 10.53% | 9.29% | 8.27% | 7.09% | 6.24% | 3.98% | 2.52% | -0.51% | 1.90% | 6.10% | ||||||
| Walt Disney Co. | 10.32% | 11.29% | 11.29% | 10.58% | 8.54% | 5.51% | 4.94% | 4.75% | 1.71% | 2.96% | 2.37% | 2.31% | 4.21% | 3.45% | 3.31% | 3.40% | 2.92% | 3.43% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
ROE = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ Stockholders’ equity
= 100 × (15,848 + 26,773 + 22,768 + 2,709)
÷ 261,221 = 26.07%
2 Click competitor name to see calculations.
The financial performance exhibits a cyclical trajectory in Return on Equity (ROE), characterized by an initial contraction, a period of robust recovery, and subsequent stabilization amid a growing equity base.
- ROE Trend Analysis
- A sustained decline in ROE is observed from March 2022 through June 2023, falling from 30.30% to a minimum of 16.82%. This trend reversed starting in September 2023, leading to a period of consistent growth that peaked at 36.66% in June 2025. The final year of the period shows a moderating trend, with the ratio fluctuating and ultimately descending to 26.07% by June 2026.
- Net Income Dynamics
- Profitability fluctuations served as the primary driver for ROE movements. Net income experienced a significant recovery phase between June 2023 and December 2024, climbing from 7,788 million US$ to 20,838 million US$. A notable anomaly occurred in September 2025, where net income dropped sharply to 2,709 million US$, resulting in a corresponding dip in ROE to 30.16%. Despite this volatility, nominal net income reached its highest point of 26,773 million US$ in March 2026.
- Stockholders' Equity Expansion
- There is a consistent and substantial upward trend in stockholders' equity, which grew from 123,228 million US$ in March 2022 to 261,221 million US$ by June 2026. The acceleration of equity growth, particularly after December 2024, created a larger denominator for the ROE calculation. This expansion explains why the ROE began to moderate in 2026 even while net income remained at historically high levels.
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Return on Assets (ROA)
Meta Platforms Inc., ROA calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income | 15,848) | 26,773) | 22,768) | 2,709) | 18,337) | 16,644) | 20,838) | 15,688) | 13,465) | 12,369) | 14,018) | 11,583) | 7,788) | 5,709) | 4,653) | 4,395) | 6,687) | 7,465) | ||||||
| Total assets | 449,956) | 395,250) | 366,021) | 303,844) | 294,744) | 280,213) | 276,054) | 256,408) | 230,238) | 222,844) | 229,623) | 216,274) | 206,688) | 184,491) | 185,727) | 178,894) | 169,779) | 164,218) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | 15.13% | 17.86% | 16.52% | 19.26% | 24.26% | 23.78% | 22.59% | 21.66% | 22.34% | 20.53% | 17.03% | 13.75% | 10.91% | 11.62% | 12.49% | 16.12% | 19.81% | 22.74% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 26.49% | 22.76% | 22.20% | 23.16% | 23.02% | 23.35% | 22.24% | 21.91% | 21.13% | 20.23% | 18.34% | 16.82% | 15.91% | 15.86% | 16.42% | 18.70% | 20.28% | 20.87% | ||||||
| Comcast Corp. | 4.35% | 7.23% | 7.34% | 8.28% | 8.36% | 5.87% | 6.08% | 5.44% | 5.75% | 5.85% | 5.81% | 5.80% | 2.48% | 2.18% | 2.09% | 2.12% | 5.26% | 5.25% | ||||||
| Netflix Inc. | 23.35% | 21.92% | 19.75% | 18.99% | 19.30% | 17.80% | 16.24% | 14.88% | 14.45% | 13.18% | 11.10% | 9.14% | 8.36% | 8.49% | 9.24% | 10.61% | 10.99% | 11.05% | ||||||
| Trade Desk Inc. | — | 7.54% | 7.20% | 7.38% | 7.00% | 7.22% | 6.43% | 5.60% | 4.91% | 4.32% | 3.66% | 3.38% | 2.97% | 1.93% | 1.22% | -0.25% | 0.92% | 2.93% | ||||||
| Walt Disney Co. | 5.47% | 6.06% | 6.28% | 5.88% | 4.55% | 2.85% | 2.53% | 2.41% | 0.87% | 1.51% | 1.15% | 1.11% | 2.01% | 1.64% | 1.54% | 1.54% | 1.31% | 1.52% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
ROA = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ Total assets
= 100 × (15,848 + 26,773 + 22,768 + 2,709)
÷ 449,956 = 15.13%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibits a cyclical pattern characterized by an initial contraction, a strong recovery phase, and recent volatility. Throughout the observed period, there is a consistent and significant expansion of the total asset base, which grew from 164,218 million USD in March 2022 to 449,956 million USD by June 2026.
- Initial Efficiency Decline (March 2022 – June 2023)
- A sustained downward trend in ROA is observed during this period, falling from a peak of 22.74% to a low of 10.91%. This decline was driven by a simultaneous reduction in net income and a steady increase in total assets, indicating a period where asset utilization became less efficient in generating profit.
- Recovery and Peak Performance (September 2023 – June 2025)
- A robust recovery occurred as net income accelerated, significantly outpacing the growth of the asset base. ROA climbed steadily from 13.75% in September 2023 to a period high of 24.26% in June 2025. This phase reflects a substantial improvement in operational profitability and asset productivity.
- Recent Volatility and Asset Dilution (September 2025 – June 2026)
- The final period is marked by increased instability. A sharp contraction in net income to 2,709 million USD in September 2025 led to a drop in ROA to 19.26%. Despite a temporary rebound in March 2026, the ROA declined to 15.13% by June 2026. This recent downward trend is attributed to the total asset base reaching its maximum value of 449,956 million USD, which has exerted downward pressure on the return ratio as income growth failed to keep pace with the scale of asset expansion.
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