US tech giants reduce shareholder payouts amid AI spending surge
Big US tech companies like Microsoft, Alphabet, Amazon, Meta, and Oracle are giving back far less cash to shareholders this year, just 9.3% of their cash flow so far in 2026, compared to 27.4% a year earlier.
The reason? They're pouring huge amounts into artificial intelligence projects instead.
US tech share buybacks drop 83%
For the first time since 2011, these companies spent more on AI than they actually earned: $556.9 billion in AI investments versus $542.9 billion in operating cash flow, leaving them with a $14 billion deficit.
Share buybacks have dropped by 83%, while dividends have gone up a bit.
Some companies even stopped buybacks altogether and are now dipping into savings or taking on debt just to keep up with payouts, a pretty big shift from how things used to work.