S&P Global Ratings changes Meta Platforms’ credit outlook to negative
+2 new sources since this summary was written
S&P Global Ratings lowered Meta Platforms’ credit outlook from stable to negative, citing uncertainty over the scale and timing of AI‑related capital expenditures and the resulting free operating cash‑flow deficits. The agency projects capex of $140 billion in 2026, rising to $252 billion by 2028, and expects free cash‑flow deficits of $22 billion in 2026 and $71 billion in 2027. Meta reported a $2.1 billion free cash‑flow deficit for Q3 2026 as capex jumped to $34.9 billion. The rating agency also noted the company’s plan to raise $60 billion through a Class C at‑the‑market stock program starting January 2027.
Why it matters
The negative outlook signals higher credit risk, which could raise Meta’s borrowing costs and affect investor sentiment. S&P Global warns that sustained negative free cash flow beyond 2028 could trigger a rating downgrade.
Key facts
- 1S&P Global Ratings changed Meta’s credit outlook to negative from stable. investing.com
- 2The agency projects Meta’s capital expenditures will be $140 billion in 2026, $225 billion in 2027 and $252 billion in 2028. investing.com
- 3S&P expects free operating cash‑flow deficits of $22 billion in 2026 and $71 billion in 2027. investing.com
- 4Meta’s Q3 2026 free operating cash‑flow deficit was $2.1 billion as capex rose to $34.9 billion. investing.com
- 5Meta plans to raise an additional $60 billion through a Class C at‑the‑market program beginning January 2027. investing.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.