Osterweis Capital: Big Tech CapEx Projected to Hit $700 Billion in 2026

Osterweis Capital Management projects that the five largest hyperscalers will deploy over $700 billion in capital expenditure during 2026, a 60% increase from 2025 levels. Alongside this infrastructure surge, Fiduciary Management identifies a credible path for annualized earnings per share growth in the low-to-mid teens. Companies are increasingly focusing on AI monetization, with Huron viewing the technology as both a revenue driver and an internal tool for cost reduction. Additionally, Booking is being highlighted for its asset-light business model, which continues to generate high returns on capital and robust free cash flow. This shift underscores a broader market transition from pure infrastructure spending toward operational efficiency and bottom-line growth. Consequently, software and information services remain core quality compounders within the evolving digital landscape.