Meta Platforms has projected a year-over-year decline in fourth-quarter revenue for its Reality Labs division, attributing the decrease primarily to the timing of product launches and sales recognition. The company expects lower sales of Quest headsets to outweigh continued growth in its artificial intelligence glasses segment.
CFO Susan Li said the company does not provide a specific forecast for Reality Labs revenue but anticipates a notable decline compared with the same period last year. She explained that the fourth quarter of 2024 benefited from the launch of the Quest 3S headset in October and corresponding holiday sales, which will not recur this year. Instead, some sales were recorded in the third quarter of 2025 as retail partners stocked inventory earlier than usual ahead of the holiday season.
Li added that while Meta foresees strong demand for its AI glasses, overall revenue in the upcoming quarter is likely to be affected by weaker headset performance.
CEO Mark Zuckerberg highlighted the company's growing momentum in wearable technologies, citing the success of products such as the Ray-Ban Meta and Oakley Meta glasses. He said the wearables business has the potential to become a highly profitable investment if it maintains its current trajectory.
Zuckerberg emphasized that Meta's long-term strategy extends beyond device sales to include revenue from AI-driven services integrated into the hardware. While many users initially purchase Meta's wearable devices for non-AI purposes, he expects artificial intelligence features to eventually become the main source of user engagement and monetization.
He also reiterated Meta's commitment to developing advanced hardware, referencing the full field-of-view Orion prototype unveiled at the previous year's Connect event. Zuckerberg said Meta's goal is to reach hundreds of millions, or even billions, of users globally, positioning wearables as a major business segment in the coming years.
Article edited by Joseph Chen
