S&P Global Ratings upgraded Uber Technologies Inc. (NYSE:UBER) to BBB+ from BBB on Thursday, citing the ride-hailing and delivery group's accelerating cash flow generation and a trajectory of deleveraging as it grows its operations. The ratings firm attached a positive outlook to the rating.
In its assessment, S&P noted that Uber's operating performance is tracking above upside credit metrics. The firm highlighted that Uber is producing about $8 billion of annual free operating cash flow while maintaining a debt-to-EBITDA ratio that is well below 1x.
Management's own guidance was referenced in the ratings discussion: Uber expects gross bookings to increase 18% to 22% in the second quarter of 2026. S&P observed that this pace of gross bookings growth is running ahead of the company's three-year financial model, which projects mid- to high-teens percentage growth, and it compared favorably with a reported compound annual growth rate of roughly 20% over the past three years.
Looking forward, S&P said it anticipates Uber's debt capacity will rise as both EBITDA and free operating cash flow scale meaningfully over the next two years. The firm singled out the potential for significant expansion in free operating cash flow - to above $9 billion in 2026 - which it said would create financial flexibility for pursuing organic growth initiatives, selective acquisitions, investments in autonomous programs and a balance of share repurchases.
Despite that constructive view, S&P identified autonomous vehicles as a material long-term credit risk. The agency qualified that risk by noting early autonomous deployments are currently limited to select markets and therefore are not expected to be a meaningful credit pressure over the next one to two years. S&P Global Mobility's forecast referenced in the rating commentary projects level-4 autonomous vehicle penetration to remain low - about 6% - by 2035.
The ratings report also addressed a potential near-term source of leverage: on May 23, 2026, Delivery Hero SE confirmed it had been approached by Uber with a takeover proposal of
S&P warned that a hypothetical all-cash offer for the stake it does not already own could materially raise leverage above the firm's base-case projections for 2026 and 2027.
Context and implications
The upgrade signals that the ratings agency views Uber's near-term credit profile as strengthened by sizable free cash flow generation and low leverage metrics. Greater debt capacity and rising cash generation were cited as factors that could allow Uber to fund organic growth, make strategic acquisitions, advance autonomous programs and still return capital to shareholders, subject to execution and capital allocation choices.