Big Tech companies are significantly cutting back on share buybacks as they invest heavily in AI infrastructure. Alphabet reported a free cash flow deficit of $5.9 billion last quarter, significantly impacting its buyback activity, which dropped to zero in 2026 after spending $61.5 billion in 2023. Meanwhile, Meta’s free cash flow fell over 90% to $784 million, and buyback activity also ceased in 2026 after spending nearly $76 billion combined between 2023 and 2025.
Microsoft, however, managed to maintain its buyback program amid a free cash flow of $19.6 billion, despite a 23% year-over-year decline. The company spent $6.8 billion on buybacks in the first half of 2026 and has consistently invested in share repurchases over recent fiscal years, but analysts warn that its free cash flow may also decline in the future.
In stark contrast, NVIDIA is increasing its buyback spending, reaching a record $19.7 billion last quarter, with a current remaining authorization of $99 billion. This marks a significant turn for the company, as its share count has declined approximately 3.5% since mid-2022 due to its aggressive buyback strategy.
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