Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Meta Platforms Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 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 profitability profile exhibits a distinct cyclical pattern characterized by a period of contraction through early 2023, a strong recovery and expansion phase peaking in mid-2025, and a subsequent moderate decline through late 2026.
- Gross Profit Margin
- Gross margins remained relatively stable throughout the observed period, maintaining a high baseline. A slight compression occurred between late 2022 and early 2023, with values dipping to approximately 78.34%. This was followed by a steady recovery, reaching a peak of 82.00% in mid-2025 before marginally retreating to 81.03% by September 2026.
- Operating and Net Profit Margins
- Both operating and net margins experienced significant volatility. A sharp downward trend is observed from March 2022, where the operating margin stood at 36.68%, falling to a trough of 23.56% in March 2023. A robust recovery followed, with the operating margin expanding to a peak of 44.02% by June 2025, indicating a period of substantial operational efficiency gains. Net profit margins mirrored this trajectory, descending to 18.27% in March 2023 before climbing to 39.99% in June 2025. Both metrics showed a downturn in the final quarters, with the operating margin closing at 32.86% and the net margin at 31.15% in September 2026.
- Return on Equity (ROE)
- ROE exhibited a mirrored correlation with net profit margins. After declining from 30.30% in March 2022 to a low of 16.82% in June 2023, the ratio increased consistently to reach 36.66% by June 2025. The subsequent period saw a decline, ending at 27.63% in September 2026, suggesting a reduction in the efficiency of generating profits from shareholders' equity during the final year of the sequence.
- Return on Assets (ROA)
- ROA followed the same general trend as other profitability metrics. A contraction phase saw ROA drop from 22.74% in March 2022 to 10.91% in June 2023. A strong rebound drove the ratio back up to a peak of 24.26% in June 2025. By September 2026, the ROA had decreased to 15.71%, reflecting a decline in the effectiveness of asset utilization relative to net income.
Overall, the analysis indicates a period of operational restructuring or market headwinds in 2022 and early 2023, followed by a high-growth efficiency phase that peaked in mid-2025. The downward trend observed from June 2025 through September 2026 suggests a normalization of margins or an increase in operational costs toward the end of the period.
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Gross Profit Margin
Meta Platforms Inc., gross profit margin calculation (quarterly data)
| Sep 30, 2026 | 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 | 51,232) | 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 | 64,601) | 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 | 81.03% | 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. | 60.86% | 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. | 69.84% | 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. | 50.68% | 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% | ||||||
| Walt Disney Co. | 37.60% | 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: 2026-09-30), 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 Q3 2026 Calculation
Gross profit margin = 100
× (Gross profitQ3 2026
+ Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (51,232 + 49,471 + 46,093 + 48,988)
÷ (64,601 + 60,801 + 56,311 + 59,894)
= 81.03%
2 Click competitor name to see calculations.
The financial performance from March 2022 through September 2026 is characterized by consistent growth in both top-line revenue and gross profit. Revenue increased from 27,908 million USD to 64,601 million USD, while gross profit rose from 21,903 million USD to 51,232 million USD over the same period. The gross profit margin exhibited a period of volatility followed by a sustained expansion and a slight late-term contraction.
- Initial Stability and Compression
- Gross profit margins remained stable at approximately 80.3% through the first three quarters of 2022. A compression phase occurred between December 2022 and June 2023, where margins declined to a low of 78.34%, indicating a temporary increase in the cost of revenue relative to total sales.
- Margin Recovery and Expansion
- A recovery trend began in September 2023, with margins returning to the 80% threshold by December 2023. This upward trajectory continued through 2024 and 2025, peaking at 82.00% between June and December 2025. This expansion suggests improved operational efficiency or a shift in revenue mix toward higher-margin services.
- Recent Performance Trends
- The final three quarters of the analyzed period show a gradual decline in the gross profit margin, moving from 81.94% in March 2026 to 81.03% by September 2026. Despite this marginal dip, the profit margin remains significantly higher than the levels observed during the 2022-2023 compression period.
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Operating Profit Margin
Meta Platforms Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2026 | 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 | 12,988) | 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 | 64,601) | 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 | 32.86% | 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. | 33.32% | 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. | 14.72% | 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. | 31.30% | 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% | ||||||
| Walt Disney Co. | 13.66% | 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: 2026-09-30), 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 Q3 2026 Calculation
Operating profit margin = 100
× (Income from operationsQ3 2026
+ Income from operationsQ2 2026
+ Income from operationsQ1 2026
+ Income from operationsQ4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (12,988 + 18,775 + 22,872 + 24,745)
÷ (64,601 + 60,801 + 56,311 + 59,894)
= 32.86%
2 Click competitor name to see calculations.
The operating profit margin exhibits a cyclical trajectory characterized by a significant initial contraction, a sustained period of expansion and optimization, and a subsequent decline toward the end of the observed period.
- Initial Margin Compression (Q1 2022 – Q1 2023)
- A consistent downward trend is observed in the operating profit margin, which decreased from 36.68% in March 2022 to a trough of 23.56% in March 2023. This contraction occurred while revenue remained relatively stagnant, indicating that operating expenses grew at a rate that significantly outpaced revenue generation during this window.
- Operational Recovery and Peak Efficiency (Q2 2023 – Q2 2025)
- A period of aggressive margin expansion followed the early 2023 low, with profitability rising steadily from 23.80% in June 2023 to a peak of 44.02% in June 2025. This phase is marked by income from operations growing faster than revenue, suggesting successful cost-reduction initiatives or a shift toward higher-margin revenue streams.
- Recent Profitability Erosion (Q3 2025 – Q3 2026)
- Following the June 2025 peak, a sustained decline in the operating profit margin is evident, falling to 32.86% by September 2026. This decline is particularly notable because it occurs alongside continued revenue growth, which reached 64.6 billion in the final period. The divergence between rising revenue and falling margins indicates a substantial increase in operating costs during the latter part of the analysis period.
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Net Profit Margin
Meta Platforms Inc., net profit margin calculation (quarterly data)
| Sep 30, 2026 | 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 | 9,860) | 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 | 64,601) | 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 | 31.15% | 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. | 50.03% | 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. | 9.20% | 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. | 29.69% | 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% | ||||||
| Walt Disney Co. | 8.70% | 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: 2026-09-30), 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 Q3 2026 Calculation
Net profit margin = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (9,860 + 15,848 + 26,773 + 22,768)
÷ (64,601 + 60,801 + 56,311 + 59,894)
= 31.15%
2 Click competitor name to see calculations.
The net profit margin exhibited a cyclical trajectory characterized by a period of contraction, a sustained phase of expansion, and a subsequent stabilization period. Between March 2022 and March 2023, profitability experienced a significant decline, reaching a low of 18.27% before entering a strong recovery trend that peaked in mid-2025.
- Margin Contraction Phase
- A consistent downward trend is observed from March 2022 through March 2023. During this interval, the net profit margin fell from 31.20% to 18.27%, representing a compression of 12.93 percentage points. This decline occurred despite relatively stable revenue figures, indicating an increase in operating costs or other expenses relative to income.
- Profitability Expansion Phase
- A period of aggressive margin expansion began in June 2023 and continued through June 2025. The net profit margin climbed steadily from 18.71% to a peak of 39.99%. This growth phase is marked by a strong correlation between rising revenue and accelerated net income growth, suggesting improved operational efficiency and scalability.
- Anomalous Dip and Stabilization
- A sharp deviation occurred in September 2025, where the net profit margin dropped to 30.89% despite the company achieving higher revenue than in previous quarters. Following this volatility, the margin entered a stabilization phase, fluctuating between 29.84% and 32.84% through September 2026. This suggests a new equilibrium in profitability as the company scaled its operations toward a quarterly revenue of approximately 64.6 billion US dollars.
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Return on Equity (ROE)
Meta Platforms Inc., ROE calculation (quarterly data)
| Sep 30, 2026 | 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 | 9,860) | 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 | 272,386) | 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 | 27.63% | 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. | 34.79% | 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. | 12.23% | 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. | 50.42% | 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% | ||||||
| Walt Disney Co. | 7.82% | 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: 2026-09-30), 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 Q3 2026 Calculation
ROE = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ Stockholders’ equity
= 100 × (9,860 + 15,848 + 26,773 + 22,768)
÷ 272,386 = 27.63%
2 Click competitor name to see calculations.
The analysis of profitability indicates a cyclical trajectory in Return on Equity (ROE), characterized by an initial contraction, a period of aggressive expansion, and a subsequent stabilization phase.
- Net Income Dynamics
- Net income exhibited a downward trend throughout much of 2022, reaching a low of 4,395 million USD in September 2022. A sustained recovery followed through 2023 and 2024, with values peaking at 20,838 million USD in December 2024. The period between 2025 and 2026 is marked by extreme volatility, including a sharp decline to 2,709 million USD in September 2025 and a subsequent peak of 26,773 million USD in March 2026, before ending the period at 9,860 million USD.
- Stockholders' Equity Growth
- Stockholders' equity demonstrates a consistent and steady upward trajectory over the analyzed timeframe. From a starting position of 123,228 million USD in March 2022, equity increased to 272,386 million USD by September 2026. This continuous accumulation of equity indicates a growing capital base, which necessitates higher absolute net income to maintain or increase the ROE percentage.
- Return on Equity (ROE) Patterns
- ROE experienced a significant decline from 30.30% in March 2022 to a trough of 16.82% in June 2023, coinciding with the period of lower net income. A strong recovery phase followed, with ROE climbing steadily to a peak of 36.66% in June 2025, reflecting a period where profit growth significantly outpaced equity expansion. In the final quarters, ROE normalized, fluctuating between 26.07% and 28.97%, suggesting a stabilization of earnings relative to the substantially larger equity base.
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Return on Assets (ROA)
Meta Platforms Inc., ROA calculation (quarterly data)
| Sep 30, 2026 | 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 | 9,860) | 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 | 478,836) | 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 | 15.71% | 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. | 23.49% | 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. | 4.39% | 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. | 25.16% | 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% | ||||||
| Walt Disney Co. | 4.20% | 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: 2026-09-30), 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 Q3 2026 Calculation
ROA = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ Total assets
= 100 × (9,860 + 15,848 + 26,773 + 22,768)
÷ 478,836 = 15.71%
2 Click competitor name to see calculations.
The analysis of profitability metrics reveals a cyclical trajectory in Return on Assets (ROA), characterized by a significant initial contraction, a strong recovery phase, and subsequent volatility associated with rapid asset expansion and fluctuating net income.
- Return on Assets (ROA) Trend Analysis
- A marked decline in ROA is observed during the first year of the period, falling from 22.74% in March 2022 to a trough of 10.91% by June 2023. This downward trend reversed sharply between June 2023 and June 2024, where ROA climbed back to a peak of 24.26%. Following this peak, the ratio exhibited increased instability, dropping to 16.52% by December 2025 before stabilizing between 15.13% and 17.86% through September 2026.
- Asset Base Expansion
- Total assets demonstrated consistent and aggressive growth throughout the analyzed timeframe, increasing from 164,218 million USD in March 2022 to 478,836 million USD by September 2026. This expansion represents a nearly threefold increase in the asset base, which placed downward pressure on the ROA ratio, necessitating significantly higher net income levels to maintain previous profitability percentages.
- Net Income Correlation and Volatility
- The fluctuations in ROA are primarily driven by volatility in net income rather than changes in the asset base. A notable anomaly occurred in September 2025, where net income dropped precipitously to 2,709 million USD, causing a corresponding dip in ROA to 19.26%. Despite this outlier, a general upward trend in earnings capacity is evident, with net income reaching a high of 26,773 million USD in March 2026, which helped sustain the ROA above 15% despite the expanded asset denominator.
- Efficiency and Profitability Synthesis
- The transition from the 2022-2023 period to the 2024-2026 period indicates a shift in operational efficiency. While the company successfully recovered its profitability margins by mid-2024, the later period suggests that the rate of asset accumulation began to outpace the growth of net income, resulting in a normalized ROA range that is lower than the 2024 peak but higher than the 2023 trough.
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