S&P Global Ratings revised Meta Platforms’ outlook to negative without downgrading its credit rating, reflecting concern about how the company will finance its artificial intelligence ambitions. In the third quarter of 2026, Meta generated revenue of $64.6 billion, up 26% year over year, but posted negative free cash flow of $2.12 billion for the first time in more than a decade. The company raised its 2026 capital expenditure guidance to a range of $135 billion to $145 billion and plans approximately $825 billion in future spending on data centers and AI infrastructure. To finance this expansion, Meta is considering a new class of non-voting shares and potential equity raises to limit additional borrowing and avoid diluting control. After the results, Meta’s stock fell 7%, while its five-year credit default swaps reached 114.79 basis points, indicating increased credit risk.
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