The tech giant posted Q4 net income of $3.56 billion, or $1.21 per share.
Non-GAAP earnings were $1.41 per share on a revenue of $8.81 billion.
Wall Street was looking for Q4 earnings of $1.31 per share with $8.51 billion in revenue.
"Our mission to connect the world is more important now than ever," said Facebook CEO Mark Zuckerberg. "Our business did well in 2016, but we have a lot of work ahead to help bring people together."
For 2016, Facebook's revenue was $26.9 billion -- up 57 percent from 2015.
The world's largest social network now stands at more than 1.86 billion monthly active users (MAU), representing an increase of 17 percent from last year. Daily active users (DAU) reached 1.23 billion, an increase of 18 percent over the same time last year.
Mobile growth was also solid for 2016. Mobile MAUs reached 1.74 billion, up 21 percent from last year, while DAUs were 1.15 billion, up 23 percent.
Facebook said mobile advertising revenue accounted for 84 percent of Q4 ad sales. Capital expenditures for the full year 2016 were $4.49 billion.