Big Tech’s AI spending squeezes share buybacks

Finimize reports that Reuters, citing LSEG data and company filings, found Microsoft, Alphabet, Amazon, Meta and Oracle generated a record $542.9 billion in operating cash flow in the first nine months of 2026, up 29% from a year earlier. Data-center and chip spending doubled to $556.9 billion, pushing the group into a $14 billion free-cash-flow deficit. Dividends and buybacks fell from 27.4% to 9.3% of operating cash flow.