Big Tech’s capital expenditure plans for 2026 are stacking up to roughly $600 billion across the four hyperscalers, and Wall Street wants receipts. Amazon (NASDAQ:AMZN | AMZN Price Prediction) reports Q1 2026 results tomorrow after the close, kicking off the most scrutinized earnings season in years.
Here is the math behind the question. Meta (NASDAQ:META) guided 2026 capex to $115B-$135B. Amazon committed to about $200 billion, predominantly AWS. Microsoft (NASDAQ:MSFT) spent $29.88B in Q2 FY26 alone. Alphabet (NASDAQ:GOOGL) guided $175B-$185B. Andy Jassy framed it bluntly: “As fast as we install this capacity, this AI capacity, we are monetizing it.”
Markets are pricing optimism. Polymarket assigns a 95.7% probability Alphabet beats, 93.8% for Microsoft, and 94% for Amazon. Yet the price action tells a split story: GOOGL is up 12% YTD, AMZN 13%, while MSFT is down 12%.
What I am watching: the gap between spend and proof. Amazon’s free cash flow already cratered 37% YoY in Q4 as capex consumed 94% of operating cash flow. Microsoft’s commercial RPO surged 110% to $625B, and Google Cloud’s backlog hit $155B. Backlog visibility is the cleanest justification for the spend.
The profit angle: AWS growth rate, Azure guidance, and Google Cloud’s 48% Q4 print are the scoreboard. If acceleration holds, the $600 billion gets validated. If not, margin compression bites the names with the thinnest backlog cover first.
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