Big Tech buybacks drop 83% as capital spending outstrips operating cash flow
Five technology companies recorded a combined US$14 billion free cash flow deficit as capital spending doubled, according to a Reuters analysis.
Share repurchases by Microsoft, Alphabet, Amazon, Meta and Oracle fell 83% to US$13.6 billion over 2026’s first nine months, according to Reuters. Its analysis of LSEG data and company reports found that capital spending exceeded the companies’ combined operating cash flow.
The five companies doubled capital spending to US$556.9 billion, while operating cash flow increased 29% to a record US$542.9 billion. Spending surpassed operating cash generation for the first time in records dating to 2011, leaving a US$14 billion free cash flow deficit. A year earlier, they had recorded a US$143.5 billion surplus.
The companies returned 9.3% of operating cash flow to shareholders, compared with 27.4% a year earlier—the lowest proportion in at least 15 years. Buybacks declined from US$81.8 billion, although dividends increased to US$37 billion from US$33.9 billion.
Neither Alphabet nor Meta repurchased shares during the period, after spending US$66.5 billion on buybacks across 2025’s first nine months. Amazon has made no repurchases since 2022 and pays no dividend. Microsoft accounted for almost all remaining buybacks, reducing its September-quarter purchases to US$4.4 billion from US$5.7 billion.
Reuters found that cash reserves, borrowing or share sales funded the US$50.6 billion distributed to shareholders. Amazon raised US$48.1 billion through long-term borrowing during the third quarter. Alphabet raised about US$12.4 billion through share sales and US$29 billion through debt.
