Alphabet and Amazon both posted negative free cash flow in the second quarter, and analysts expect that pattern to continue into the third quarter, according to Techub, citing CNBC. FactSet data shows Alphabet is projected to report free cash flow of negative $2.3 billion in Q3, with capital expenditures reaching $55.2 billion. Amazon is expected to post negative $9.9 billion in free cash flow, alongside $58.7 billion in capex. An August report from S&P Global Ratings estimated that hyperscale cloud providers will generate negative free operating cash flow in 2026 and 2027. Analysts said investor attention is now centered on forward guidance for capital spending. CreditSights analyst Chalfin said hyperscalers are not expected to announce large new bond sales during the current earnings season, while Oracle may matter more for credit markets because it already has $117 billion in long-term debt outstanding and carries a BBB- rating, the lowest investment-grade tier.
Alphabet and Amazon both recorded negative free cash flow in the second quarter, and analysts expect the trend to continue in the third quarter, according to Techub, citing CNBC.
FactSet data shows Alphabet is expected to post negative $2.3 billion in free cash flow for Q3, with capital expenditures at $55.2 billion. Amazon is projected to report negative $9.9 billion in free cash flow, while capex is expected to reach $58.7 billion.
An August report from S&P Global Ratings estimated that hyperscale cloud providers will post negative free operating cash flow in 2026 and 2027.
Analysts said the market is focused on how these companies guide future capital spending. CreditSights analyst Chalfin said hyperscalers are not expected to announce large-scale new bond issuance during the current earnings season. He added that Oracle’s update could carry more weight for credit markets because the company has already issued $117 billion in long-term debt and holds a BBB- rating, the lowest investment-grade level.
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