AI spending strains hyperscalers' core businesses as free cash flow turns negative

Meta, Amazon and Alphabet all reported negative free cash flow for the quarter — $2.12 billion, $42.4 billion and $9.07 billion respectively. Microsoft was the only hyperscaler still positive, but its cash generation fell 27% to $18.63 billion and it will tap the bond market. Amazon's 2026 capex is set to reach $220 billion, while Meta's could hit $145 billion.

• Meta free cash flow at -$2.12B, Amazon at -$42.4B, Alphabet at -$9.07B
• Microsoft cash generation fell 27% to $18.63B; it will raise debt
• Amazon capex to reach $220B in 2026, Meta up to $145B
• Alphabet search revenue growth slowed for a third straight quarter