Moody’s Affirms Aa3 Rating as Meta Posts 24% Q4 Revenue Gain
Moody’s reaffirmed Meta’s Aa3 long-term issuer, senior unsecured and shelf ratings with a stable outlook, citing strong Q4 FY2025 performance and 3.6 billion daily active users. The company posted $59.9 billion in Q4 revenue, up 24% year-on-year, delivered EPS of $8.88 and guided Q1 FY2026 revenue of $53.5 billion to $56.5 billion.
1. Moody’s Affirms Credit Ratings
On February 27, Moody’s reaffirmed Meta’s Aa3 long-term issuer, Aa3 senior unsecured notes and (P)Aa3 senior unsecured shelf ratings with a stable outlook, highlighting robust operating performance, conservative credit metrics and substantial liquidity.
2. Q4 FY2025 Financial Results
Meta reported $59.9 billion in revenue for Q4 FY2025, marking a 24% year-on-year increase, and delivered EPS of $8.88, outperforming analyst expectations and rounding out a full year of $200.97 billion in revenue, up 22%.
3. User Base and Market Position
The company maintains leadership in non-search digital advertising, supported by approximately 3.6 billion daily active users across Facebook, Instagram, WhatsApp and Messenger, underscoring its dominant market reach.
4. Outlook and Capital Expenditures
Moody’s projects revenue growth exceeding 20% in 2026 and 18% in 2027, but anticipates elevated capital expenditures to constrain free cash flow; management forecasts Q1 FY2026 revenue between $53.5 billion and $56.5 billion due to strong ad demand.