Tech investors hoping for less robust AI spending may have to wait until 2028 before the fog begins to lift on this balance sheet line item.
Quick analysis: Consensus estimates for 2026 hyperscaler capital expenditures have been raised by a modest $36 billion since the start of the reporting season, according to new research from Goldman Sachs strategist Ben Snider
But 2027 capex estimates have jumped from $929 billion (23% annual growth) to over $1 trillion (33% annual growth) over this period. This is more than $100 billion above estimates heading into the quarter, Snider pointed out. What’s more, capex stands to exceed cash flow from operations from 2026 through 2028.
The finer details: The reaction to large-scale capex by the hyperscalers has been rough for the bulls. Meta (META) raised the bottom end of its 2026 capital expenditure target, tightening the full-year spending range to $135 billion to $145 billion (up from $125 billion to $145 billion). But specifics about 2027 capital expenditures were nonexistent. “We aren’t providing a specific outlook for 2027 capex at this time,” Meta CFO Susan Li told analysts on a late-Wednesday earnings call. “Infrastructure planning remains highly dynamic.