$26.4 billion deficit... Free cash flow of the four Big Tech companies turned from surplus to deficit in one year

Microsoft, Alphabet, Amazon and Meta together posted a $26.4 billion free cash flow deficit in Q3 2026, a swing from a $61.7 billion surplus a year earlier, according to Yield Theory's aggregation of the four companies' filings. Combined operating cash flow was $175.5 billion against $201.9 billion of capital expenditures, meaning the shortfall reflects heavy capex rather than operating losses at any of the four. The reversal matters because it shows AI infrastructure spending now outstripping internally generated cash at the largest hyperscalers. Watch whether capex guidance is trimmed or debt and equity issuance rises to fund the gap.