Big Tech Buybacks Come to a Halt Amid AI Investment Push

The big tech companies are shifting their focus towards artificial intelligence infrastructure investments, putting pressure on their ability to return capital to shareholders. Alphabet and Meta Platforms' free cash flow (FCF) have taken a hit, with Alphabet's FCF coming in at negative $5.9 billion last quarter and Meta's FCF falling over 90% to $784 million.

Microsoft was the only AI hyperscaler that managed to post FCF above $1 billion, but its figure still fell 23% year-over-year (YOY) to $19.6 billion. This backdrop has led to a significant drop-off in share buybacks from these companies.

Alphabet, for example, spent $61.5 billion on buybacks in 2023 and $45.7 billion in 2025, but its repurchases came in at just $5.5 billion by Q4 2025, falling over 64% YOY. The company has since issued $30.5 billion in shares, bringing its outstanding share count up approximately 1.4% since the start of the year.

Meta's story is similar, with the company spending $19.8 billion on buybacks in 2023 and $26.2 billion in 2025, but its repurchases have dwindled to zero in 2026. Meta's outstanding share count has risen by around 1.4% since Q3 2025 due to rising stock-based compensation.

NVIDIA, on the other hand, is experiencing a record level of buybacks, with the company spending $19.7 billion last quarter under its share repurchase authorization.