Key facts
- Big Tech companies returned smallest share of cash to shareholders in 15 years.
- AI spending doubled capital expenditures, leading to a $14 billion free cash flow deficit.
- Share buybacks were slashed by 83% to $13.6 billion.
- Dividends increased to $37 billion, while buybacks were drastically cut.
- Alphabet and Meta bought back no shares in 2026.
- Technology stocks' shareholder yield was 0.28% in July.
The five largest US technology companies generated record cash in the first nine months of 2026, but returned the smallest portion to shareholders in at least 15 years due to significant artificial intelligence spending. This shift away from buybacks, which have historically supported tech stock prices, leaves investors more reliant on AI investments to justify current valuations. Operating cash flow increased by 29% to $542.9 billion, yet capital expenditures doubled to $556.9 billion, resulting in a $14 billion free cash flow deficit, a stark contrast to the $143.5 billion surplus from the previous year. Share repurchases plummeted by 83% to $13.6 billion, while dividends saw a modest increase to $37 billion.