Meta lost $4 billion on Reality Labs in latest quarter, averaging $4 billion in losses per quarter over the past 21 quarters since 2021.

Meta's Reality Labs division lost $4 billion in the most recent quarterly earnings report. Over its last 21 quarterly earnings reports dating back to 2021, Reality Labs has lost a total of $83.5 billion, averaging about $4 billion per quarter.

Meta is shifting focus away from metaverse ambitions and toward AI infrastructure spending. The company projected it will spend between $125 billion and $145 billion on infrastructure capex in 2026. Meta CFO Susan Li stated on the earnings call that the company has 'continued to underestimate our compute needs' and is not providing a specific outlook for 2027 capex.

Despite strong quarterly results—net income of $26.8 billion (up 61% year-over-year) and revenue of $56.3 billion (up 33% year-over-year)—Meta's stock was down more than 5% in after-hours trading following the earnings report.