Microsoft Buybacks Fall to $3.4 Billion, Lowest in Nearly 10 Years as AI Costs Climb
Updated
Updated · Bloomberg · Jun 18
Microsoft Buybacks Fall to $3.4 Billion, Lowest in Nearly 10 Years as AI Costs Climb
3 articles · Updated · Bloomberg · Jun 18
Summary
$3.4 billion in first-quarter repurchases made Microsoft the only one of the four biggest AI spenders to buy back stock.
That total was the lowest buyback figure among Microsoft, Alphabet, Meta and Amazon in nearly a decade, underscoring how AI investment is crowding out a longtime support for Big Tech shares.
Rising spending on the AI race is eroding the steady repurchase programs that have helped fuel Big Tech stock gains for years.
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Microsoft's $44 Billion Buyback Slowdown: How AI Capex Is Reshaping Growth, Margins, and Investor Sentiment in 2026
Overview
Microsoft has recently reduced its share buyback activity, a move that analysts believe will impact the broader market, especially as Goldman Sachs expects lower buybacks among major tech companies to weigh on overall S&P 500 buybacks. This shift reflects Microsoft’s strategic reallocation of capital, as investors closely watch how the company balances shareholder returns with its free cash flow outlook. The change is driven by expectations of higher capital expenditures throughout 2026, particularly for AI investments. Any significant change in this balance could affect Microsoft’s market valuation, even if its core business remains strong.