Wall Street's estimate for 2027 hyperscaler capital spending has jumped from $929 billion to more than $1 trillion since earnings season began, according to Goldman Sachs. Meta tightened its 2026 budget but gave no 2027 detail, while Alphabet raised its own guidance and saw its shares fall. The clearer picture on spending will not arrive before 2028.
Wall Street's estimate for 2027 hyperscaler capital expenditure has jumped from $929 billion to more than $1 trillion since earnings season began, according to new research from Goldman Sachs strategist Ben Snider. That shift puts projected 2027 spending growth at 33%, up from 23% at the start of the reporting period.
The new figure sits more than $100 billion above where estimates stood heading into the quarter, Snider pointed out. As a result, hyperscaler capex is set to exceed cash flow from operations from 2026 through 2028.
A smaller 2026 revision hides inside the bigger 2027 shift
By contrast, 2026 hyperscaler capex estimates have been raised by a more modest $36 billion since the reporting season started.
Meta tightens 2026 spending but stays silent on 2027
Meta raised the bottom end of its 2026 capital expenditure target, tightening the full-year range to $135 billion to $145 billion, up from $125 billion to $145 billion. Yet the company gave no specifics for the following year.
Speaking to analysts on a late-Wednesday earnings call, Meta CFO Susan Li said: "We aren't providing a specific outlook for 2027 capex at this time." Meta's stock is down 7% over the past five days, and 14% for the year, per Yahoo Finance data.
Alphabet's capex guidance climbs as shares slide
Alphabet's second-quarter capital expenditures came in at $44.9 billion, slightly above Wall Street forecasts of $44.7 billion. The company also raised its full-year capex guidance to $195 billion to $205 billion, up from $180 billion to $190 billion, with executives flagging a significant increase for 2027.
Shares of Alphabet fell sharply in response to the earnings report.
Free cash flow is what matters most for hyperscalers right now, and only Microsoft has a good story to tell there in the near term.
Source: Yahoo Finance
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