STOCKS | Five Tech Giants Report Earnings, Three Post Negative Free Cash Flow

Five of the Magnificent Seven have reported their latest quarterly results, and three recorded negative free cash flow (FCF): Amazon, Alphabet and Meta. According to Sina Finance, their quarterly FCF was approximately negative $33.5 billion, $9.1 billion and $2.1 billion, respectively; Microsoft and Tesla reported positive FCF of about $18.6 billion and $1.5 billion. Amazon, Microsoft and Alphabet reported cloud revenue growth of 39%, 48% and 103%, respectively, as AI demand continued to drive expansion. Amazon’s FCF over the 12 months through September 30 shifted to an outflow of $42.357 billion from an inflow of about $14.8 billion a year earlier. The company expects cash capital expenditure of about $220 billion in 2026, with a significant increase in 2027. Microsoft reported Azure revenue growth of 48% and FCF of about $18.6 billion in its fiscal first quarter of 2027. Alphabet’s third-quarter FCF was negative $9.1 billion, while its capital expenditure reached $51.4 billion. Meta reported third-quarter operating cash flow of about $32.8 billion and capital expenditure of about $34.9 billion; it expects full-year 2026 capital expenditure of $135 billion to $145 billion. The report says investors are weighing whether heavy AI infrastructure spending can translate into profits and cash flow. Zhang Yi, CEO of iiMedia Research, said the key measures include order visibility and capital discipline. Apple and Nvidia were expected to report their latest quarterly results the following month.