Share buybacks at five tech giants fall 83% amid SI spending
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
Building SI infrastructure already consumes more money than the five tech giants generate: shareholders receive less now in exchange for a bet on future profits from SI.
Microsoft, Alphabet, Amazon, Meta and Oracle returned 9.3% of their operating cash flow to shareholders through dividends and buybacks in the first nine months of 2026, compared with 27.4% a year earlier — the lowest share in at least 15 years. These are the findings of a Reuters analysis of LSEG data and company reports. Their operating cash flow rose 29% to a record $542.9 billion, but capital expenditure doubled to $556.9 billion and exceeded the cash they generated for the first time in data going back to 2011. Combined free cash flow turned negative, reaching a $14 billion deficit versus a $143.5 billion surplus a year earlier. Buybacks fell 83%, from $81.8 billion to $13.6 billion, while dividends rose from $33.9 billion to $37 billion. Alphabet and Meta repurchased no shares in 2026, although they bought back $66.5 billion worth in the first nine months of 2025. With free cash flow negative, the $50.6 billion paid to shareholders was effectively funded from reserves, borrowing or share sales. The five companies also hold more than $3 trillion in commitments related to building SI infrastructure.