Is the business good?
How good a business is META?
Meta Platforms earns 27% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
27%
Return on invested capital · cost of capital 9.0% · 18 points above what the capital costs: growth creates value
- Operating margin
- 38%
Operating margin · Internet Content & Information median 6.3% · 12 months to Q2 2026
- Cash conversion
- 0.60×
Cash conversion · 0.70× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.16%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 38% |
| FY2021 | 40% |
| FY2022 | 25% |
| FY2023 | 35% |
| FY2024 | 42% |
| FY2025 | 41% |
Details›
- Gross margin12 months to Q2 2026
- 82%
- Operating margin12 months to Q2 2026
- 38%
- Net margin12 months to Q2 2026
- 30%
- Free cash flow margin
- 18%
- R&D as % of revenue
- 31%
- Revenue, trailing twelve months
- $228.2B
- Free cash flow, trailing twelve months
- $41.0B
- Net income, trailing twelve months
- $68.1B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 27%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Content & Information
Ranks #2 of 24 by Smart Score