Big Tech returns smallest shareholder cash share in 15 years as AI spending soars

The biggest US technology companies generated record cash in the first nine months of 2026 but returned the smallest share to shareholders in at least 15 years, as surging AI spending squeezed share buybacks. Operating cash flow rose 29% to a record $542.9 billion, yet capital spending doubled to $556.9 billion, exceeding cash generation for the first time since 2011. This left a combined free cash flow deficit of $14 billion, versus a $143.5 billion surplus a year earlier, with buybacks cut 83% to $13.6 billion. Alphabet and Meta halted repurchases entirely, while Microsoft accounted for nearly all remaining buybacks. The loss matters because buybacks previously boosted earnings per share by reducing share counts, and investors now depend on AI profits to justify valuations, with no end to spending increases in sight.