Free Cash Flow

Major tech companies are investing heavily in AI, with Alphabet, Microsoft, Meta, and Amazon projecting nearly $700 billion in spending this year. This surge is driven by chip acquisition and data center construction, but it’s significantly impacting free cash flow, leading to increased debt and reliance on financing. Despite near-term financial pressures, their substantial cash reserves provide a buffer, positioning them to build a competitive advantage in the transformative AI sector, though market contagion and revenue growth sustainability remain concerns.

Baker Hughes ended 2025 with flat revenue but a strong order book, driven by record orders in its Industrial & Energy Technology (IET) segment. The company achieved significant free cash flow and expects continued growth in IET, offsetting a weaker Oilfield Services & Equipment (OFSE) segment. This strategic focus positions Baker Hughes for enhanced durability and profitability.

.Oracle’s shares plunged after the cloud‑software giant missed quarterly sales, gave a weak outlook and raised its FY‑2026 cap‑ex target to $50 billion, sparking concerns over its balance‑sheet capacity. Investors also worried about the $300 billion OpenAI contract, which management did not address. Despite a $10 billion free‑cash‑flow burn, Oracle added $69 billion to its performance obligations, boosting forward‑looking revenue metrics. While the AI‑compute market remains strong, the stock’s volatility highlights the need for robust cash generation, favoring peers like Microsoft, Amazon and Meta.

ASML Holding repurchased €2.1 billion of shares in the first nine months of FY 2023‑24, bringing total buy‑backs to €5.0 billion and lifting EPS by €0.42. The programme, backed by €5.8 billion free cash flow from record €26.0 billion revenue, reflects confidence in its EUV market dominance and upcoming High‑NA EUV launch. Shares gained 1.3 % after the announcement, and analysts upgraded ratings, citing robust cash generation and attractive valuation. Management expects FY 2024 revenue of €28 billion and €6.5 billion free cash flow, sustaining further repurchases.

Rosen Law filed a securities class‑action for investors who bought StubHub (NYSE STUB) in its September 2025 IPO, alleging the registration statement misrepresented vendor‑payment timing and free‑cash‑flow, inflating valuation. The firm will work on a contingency basis, inviting shareholders to join via a portal; a lead plaintiff must be named by Jan 23 2026. No class is yet certified. The case underscores disclosure risks for fintech platforms and may prompt tighter SEC cash‑flow reporting requirements.

Forum Energy Technologies reported Q3 2025 revenue of $196 million and a net loss of $21 million ($1.76 per diluted share). Adjusted net income was $3 million ($0.27 per diluted share), with adjusted EBITDA at $23 million, up 13% sequentially. Operating and free cash flow were $23 million and $28 million, respectively. The company repurchased 635,000 shares for $15 million and increased its 2025 full-year free cash flow guidance to $70-$80 million. Orders hit $240 million with a 122% book-to-bill ratio.

Planet Labs PBC (PL) reported record Q2 revenue of $73.4M, a 20% YoY increase, and a 516% YoY increase in RPOs to $690.1M. Backlog grew 245% YoY to $736.1M. The company generated $85.1M in year-to-date net cash from operating activities and $54.3M in positive free cash flow. Planet launched two high-resolution Pelican satellites and secured key contracts with the U.S. DoD, NATO, and the German government. They ended the quarter strong with revenue growth, positive EBITDA, and $271.5M in cash, cash equivalents, and short-term investments.