Big Tech returns smallest share of cash to shareholders in 15 years, given AI spending
Five leading US technology companies generated record cash flows in the first nine months of 2026, but returned the smallest share to shareholders in at least 15 years due to soaring AI investments. Microsoft, Alphabet, Amazon, Meta, and Oracle gave back just 9.3% of their cash to investors in the form of dividends and share buybacks, down from 27.4% a year prior.
Capital spending doubled to $556.9 billion, exceeding cash returns for the first time since 2011. As a result, the companies faced a $14 billion free cash flow deficit. Share buybacks shrank 83% to $13.6 billion, while dividends rose to $37 billion. Alphabet and Meta did not repurchase shares in 2026, while Amazon suspended its buybacks.
The loss of buybacks impacts per-share earnings, as companies spread profits across fewer shares. With negative free cash flow, the companies funded their payouts from cash reserves, borrowing, or share sales.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
