Five Major U.S. Tech Giants' Capital Expenditure Expected to Exceed Free Cash Flow by 2027

According to Reuters' analysis of LSEG consensus data, Microsoft, Alphabet, Amazon, Meta, and Oracle are projected to see combined capital expenditure surpass free cash flow by 2027. Operating cash flow for these companies is expected to increase approximately $340 billion in 2027 compared to 2025, while capital expenditure is projected to rise by around $534 billion—a ratio of $1.57 in new investment for every $1 in cash flow growth.

Oracle faces the most acute pressure, with capital expenditure reaching $55.7 billion in fiscal 2026 (as of May) against operating cash flow of $32 billion, a ratio jump from 47% in fiscal 2022 to 174% currently. The company's stock has declined 36% year-to-date. Amazon's first-quarter free cash flow also fell to $1.2 billion.