JPMorgan has lifted its target price on Meta Platforms Inc. to $825.00 from $800.00 while retaining an Overweight rating, pointing to a stronger-than-expected revenue trajectory as the primary justification.
The firm said Meta's first-quarter revenue outlook appears robust, with growth entering the 30% range. JPMorgan indicated that such revenue trends suggest 2026 top-line results could be sufficient to offset Meta's projected total expenses, which the bank places in a $162 billion to $169 billion range, as well as capital expenditures estimated between $115 billion and $135 billion.
Doug Anmuth, the JPMorgan analyst covering the stock, described the situation as establishing bottom-line guardrails, with the bank forecasting operating income growth for Meta in 2026. He also noted that Reality Labs' operating losses are expected to be similar to last year's level, which JPMorgan views as a peak for those losses in 2026.
On the artificial intelligence front, JPMorgan said Meta has moderated expectations for delivering a frontier large language model in the first half of 2026. Instead, the company is emphasizing initial models that will be "good" and demonstrating a path toward the frontier model over the course of the year.
Market reaction after Meta's earnings release was positive in the short term: shares traded up roughly 7% in after-hours trading. JPMorgan cautioned, however, that some pushback is likely and could make those gains difficult to sustain. The bank's forecast for 2026 free cash flow remains modestly positive at $5 billion.
Other brokerage updates followed Meta's quarterly results. Scotiabank raised its price target to $700, and BMO Capital increased its target to $730, with both firms keeping their existing ratings. BofA Securities raised its price target to $885 and called out artificial intelligence as a key contributor to Meta's performance. Citizens kept a Market Outperform rating and set a $900 price target, highlighting AI's role in improving user engagement, particularly via Instagram Reels. William Blair maintained an Outperform rating and pointed to rising engagement metrics.
Meta's fourth-quarter operational indicators cited by these firms included more than 3.5 billion daily active users across its platforms, an 18% increase in ad impressions, and a 30% jump in Instagram Reels watch time. Analysts and the brokerage community framed these metrics as evidence of Meta's focus on AI and user engagement as central strategic levers.
Taken together, the analyst moves reflect a consensus that Meta's recent results and guidance support higher valuations, even as firms weigh near-term risks such as sustaining post-earnings share gains and the timing of advanced AI model releases.