Big Tech Shareholder Returns Hit 15-Year Low as AI Spending Surges

MT Newswires Live10-31 06:21

Microsoft, Alphabet, Amazon, Meta and Oracle returned 9.3% of operating cash to shareholders in the first nine months of 2026, the lowest share in at least 15 years, as rising artificial intelligence spending curtailed buybacks, Reuters reported Friday.

The five companies' capital spending doubled to $556.9 billion, exceeding operating cash flow of $542.9 billion for the first time in data going back to 2011. Share repurchases fell 83% to $13.6 billion, while dividends rose to $37 billion, Reuters said.

The companies' combined free cash flow turned negative, leaving $50.6 billion in shareholder payouts effectively funded by cash reserves, borrowing or share sales. Further AI spending increases are expected, Reuters reported.

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