S&P shifted Meta Platforms' credit rating outlook to negative
S&P Global Ratings revised Meta Platforms’ outlook to negative from stable, keeping its AA- rating, citing uncertainty over how long elevated AI-related capital spending and negative free cash flow will persist. It forecasts capital expenditures of $140 billion in 2026, rising to $252 billion in 2028, and free-cash-flow deficits peaking at $71 billion in 2027.
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S&P kept Meta Platforms’ credit rating at AA- while shifting its outlook from stable to negative, citing the possibility that heavy AI-related spending could keep free cash flow in the red. The agency said uncertainty over how long capital spending will remain elevated and free operating cash flow (FOCF) negative drove the outlook change. S&P forecasts Meta’s capital expenditures at $140 billion in 2026, more than $225 billion in 2027 and $252 billion in 2028. It expects FOCF deficits of $22 billion in 2026, peaking at $71 billion in 2027, then narrowing to $39 billion in 2028. The agency also projects adjusted leverage will rise from 0.3x at the end of 2026 to 1.3x in 2028, partly as future lease obligations increase. Meta’s latest guidance puts 2026 capex at $135 billion to $145 billion.
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Verifier’s note
CNBC and Reuters report that S&P Global moved Meta’s outlook to negative over elevated AI spending and cash-flow concerns. S&P Global’s ratings announcement confirms the action and its rationale, and all three results are dated October 30, 2026.