Microsoft is the only hyperscaler not forecast to dip into negative FCF in the next year

What happened: BofA Global Research forecasts that Microsoft ($MSFT) is the only major hyperscaler not expected to fall into negative free cash flow over the next twelve months, while Amazon ($AMZN), Alphabet ($GOOGL, $GOOG), Oracle ($ORCL), and Meta ($META) are all expected to do so by 2027. Key numbers: BofA projects these Why it matters: BofA expects hyperscalers' free cash flow to shift from negative to positive by the second half of 2027 as AI revenue growth accelerates and AI capex decelerates, but warns 2027 expectations imply a marked shift in trend given the wider capex surprise. Market: -1.9% today ($250.00), +10.4% YTD, 1.1x vol — as of 20:01 UTC

BofA Global Research forecasts that Microsoft ($MSFT) is the only major hyperscaler not expected to fall into negative free cash flow over the next twelve months, while Amazon ($AMZN), Alphabet ($GOOGL, $GOOG), Oracle ($ORCL), and Meta ($META) are all expected to do so by 2027.

BofA expects hyperscalers' free cash flow to shift from negative to positive by the second half of 2027 as AI revenue growth accelerates and AI capex decelerates, but warns 2027 expectations imply a marked shift in trend given the wider capex surprise. Market: -1.9% today ($250.00), +10.4% YTD, 1.1x vol — as of 20:01 UTC