Microsoft Poised to Outpace Big Tech Peers in Free Cash Flow by 2027

A recent analysis by I/O Fund suggests that Microsoft (MSFT) could emerge as the leader in free cash flow among its Big Tech peers in 2027.

The forecast, based on MarketScreener estimates, projects Microsoft's free cash flow to rise from $19.6 billion in the June quarter to an estimated $46.2 billion in 2027.

This is a significant increase and puts Microsoft ahead of its competitors, including Amazon (AMZN) and Meta (META), which are projected to be negative $6.8 billion and negative $21.7 billion, respectively, in 2027.

The analysis also notes that the increasing spending on AI infrastructure could put pressure on hyperscaler cash flows, even as Microsoft stands apart from its peers in its ability to remain strongly free-cash-flow positive.