...February 11, 2026 This report does not constitute a rating action. What's new: Meta reported fiscal-year 2025 results ahead of our expectations and provided 2026 full-year cost ($162 billion-$169 billion) and capital expenditure (capex; $115 billion-$135 billion) guidance. We updated our forecast to reflect these financial updates and now expect S&P Global Ratings-adjusted leverage of 0.2x in 2026 and 0.3x in 2027, which are higher than our previous expectations. Our updated forecast includes healthy revenue growth, $10 billion of annual debt issuances (our assumption and not based on any guidance from the company), and no share repurchases over the forecast period. We forecast negative discretionary cash flow (defined as free cash flow less dividends and share repurchases) in both 2026 and 2027, with a return to positive discretionary cash flow beyond that. Meta updated its financial policy but remains firmly committed to the boundaries of the '##-' rating. Meta noted its strong net cash...
