S&P Global Ratings Shifts Meta Outlook to Negative

S&P Global Ratings revised the outlook for Meta Platforms from stable to negative on Friday, citing uncertainty regarding the company's elevated capital expenditures and negative free operating cash flow. The agency projects Meta's capital expenditures will reach $140 billion in 2026 and could accelerate to $252 billion by 2028.

S&P Global expects free operating cash flow deficits of $22 billion in 2026 and $71 billion in 2027. The agency noted that Meta's ability to monetize its AI investments is more limited than those of its peers. To fund this infrastructure expansion, Meta has already raised $37.5 billion through stock sales and intends to raise another $60 billion via a Class C stock program beginning in January 2027.

The rating agency warned it could lower Meta's credit rating if adjusted leverage exceeds 1.0x on a sustained basis and cash flow remains negative beyond 2028.