Are the hyperscalers spending more than they make?
As of filings through October 30, 2026; latest quarter complete for all five: Sep 2026
In the quarter ended Sep 2026, 4 of the 5 spent more than their operations generated: Alphabet, Amazon, Meta and Oracle. Over the 37 quarters the rule can be judged here, the count has averaged 0.7.
- Count, latest quarter
- 4 of 5
- Companies meeting the rule in the latest quarter complete for all five
- Average count
- 0.7
- Over the 37 calendar quarters the rule can be judged
- Highest count
- 4
- Most companies meeting the rule in any one quarter since Sep 2017
The rule, fixed before any result was read
A company counts in a quarter when its purchases of property and equipment exceed its net cash from operating activities, both as reported in its cash flow statement for that quarter.
Quarter by quarter
Count of fiveCount of companies meeting the rule in each calendar quarter. A lighter bar means fewer than 5 could be judged that quarter.
The five in the latest quarter
Millions of dollars, Sep 2026| Company | Fiscal quarter | Capital spending | Operating cash flow | Share of cash flow | Against a year earlier | Long-term debt change | Meets the rule |
|---|---|---|---|---|---|---|---|
| Microsoft | Sep 2026 | 39,367 | 58,000 | 68% | +103.0% | +23 | No |
| Alphabet | Sep 2026 | 51,355 | 42,290 | 121% | +114.4% | +26,937 | Yes |
| Amazon | Sep 2026 | 77,259 | 42,422 | 182% | +120.1% | +44,231 | Yes |
| Meta | Sep 2026 | 33,942 | 32,785 | 104% | +80.3% | (2,742) | Yes |
| Oracle | Aug 2026 | 28,499 | 23,103 | 123% | +235.2% | — | Yes |
Why this rule
Operating cash flow is what the business produced before any investment. When capital spending is larger, the difference has to come from the balance sheet, from borrowing, from issuing shares or from leases, and the question of who pays for the build-out begins here.
The rule is a quarter-by-quarter test, so seasonal cash flows move it: a company with a strong December quarter can pass in December and fail in March on the same annual plan. The four-quarter figures on each company page smooth that.
Questions this page answers
- What exactly is the rule?
- A company counts in a quarter when its purchases of property and equipment exceed its net cash from operating activities, both as reported in its cash flow statement for that quarter.
- Which companies met it in the latest quarter?
- Alphabet, Amazon, Meta and Oracle in the quarter ended Sep 2026.
- Why is the verdict a count and not a score?
- A count keeps every input checkable: each company either met the printed rule or did not, and the company page shows the figures that decided it. A blended score would hide which input moved.
- Which quarter does the verdict describe?
- The latest calendar quarter for which all five hyperscalers have structured filings, Sep 2026 as of October 30, 2026. A company that has reported a later quarter shows it on its own page; the count moves when all five have reached the next quarter.