Evercore Sees 5% FCF Growth as Capex Jumps 58%; Hedge Funds Pour $33.3 B into Microsoft
Evercore projects Microsoft’s free cash flow will rise 5% in fiscal 2026 as hyperscaler capital expenditures surge 58% year-over-year. Hedge fund tracking data shows $33.3 billion flowed into Microsoft in Q4, second only to Nvidia’s $38.9 billion.
1. Evercore Forecasts Free Cash Flow Growth
Evercore’s analysts project Microsoft will increase free cash flow by approximately 5% in fiscal 2026, driven by strong cloud demand despite a 58% year-over-year jump in hyperscaler capital spending on infrastructure.
2. Hedge Funds Ramp Up Microsoft Positions
HedgeFollow data shows hedge funds invested $33.3 billion into Microsoft in Q4 2025, making it the second-largest allocation among mega-cap tech; key buyers included BlackRock, Schonfeld Strategic Advisors and Millennium Management.
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Sources
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