S&P revises Meta credit outlook to negative over AI spending

S&P Global Ratings revised Meta Platforms’ credit outlook to negative from stable on October 30 while affirming the company’s AA- issuer credit rating. The action did not lower Meta’s rating, but it signaled greater risk that the company’s AI buildout could weaken its credit profile.

S&P pointed to significant uncertainty over Meta’s capital spending and free operating cash flow as the company expands its artificial-intelligence infrastructure. That puts the pace of the buildout—and its effect on cash generation—at the center of the agency’s assessment of Meta’s credit quality.

Meta’s latest financial results show the scale of the buildout. The company reported $34.91 billion in third-quarter capital expenditures, including principal payments on finance leases. It also reported negative $2.12 billion in free cash flow, a company-defined non-GAAP measure.

Meta narrowed its 2026 capital-expenditure guidance to $135 billion to $145 billion from $130 billion to $145 billion. The company also said it expected to continue investing aggressively beyond 2026 to support its core business and emerging AI initiatives.