Big Tech returns smallest share of cash to shareholders in 15 years amid AI spending
nordicinst · x · 2026-10-31
A Reuters analysis of LSEG data finds that big US tech companies generated record cash in the first nine months of 2026, yet returned the smallest share of it to shareholders in at least 15 years as surging AI spending squeezed buybacks.
- Microsoft, Alphabet, Amazon, Meta and Oracle returned just 9.3% of operating cash via dividends and buybacks in the first three quarters, down from 27.4% a year earlier.
- The buyback retreat threatens a long-standing pillar of tech share prices; investors increasingly depend on heavy AI investments delivering enough profit growth to justify valuations.
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