> ## Content Index > Fetch the complete content index at: https://www.sotkn.com/llms.txt > Use this file to discover other available public pages before exploring further. # Which Hyperscaler Capex Lines to Watch This Earnings Season? Who Gets Paid Down the Chain - URL: https://www.sotkn.com/explained/hyperscaler-capex-lines-to-watch/ - Published: 2026-10-12T16:22:26.000Z - Updated: 2026-10-12T17:27:05.000Z - Description: Watch six lines, not one capex headline. Cash pays chip, memory and server vendors first; leases pay landlords later; rented capacity pays neoclouds as a cost. - Author: Sean - Tags: #desk-explained EXPLAINED · Mechanism · Last reviewed: 13 Oct 2026 · Next review: after Amazon's Q3 2026 results Watch six lines, not one capex headline: cash paid for property and equipment, finance leases, leases signed but not yet started, kit received but not yet paid for, rented third-party capacity, and the full-year guide (and whether it was filed or spoken). The cash line pays chip, memory, server and construction vendors first. The lease lines pay landlords and, through them, power and buildings later, over years. Rented capacity pays neoclouds and other clouds as a running cost that never appears in capex. Microsoft and Alphabet report on 28 October 2026\. Amazon and Meta had not announced their dates when this page was checked. **In short.** This sits on the [Hyperscalers layer](https://www.sotkn.com/stack/hyperscalers/). - In the June quarter, Alphabet paid $44.9 billion for property and equipment, Amazon $54.2 billion before $1.1 billion of proceeds and incentives, and Meta $30.1 billion. - Microsoft's capital expenditures were $41 billion including finance leases, of which $35.8 billion was cash paid. - Meta's leases signed but not yet started were about $279 billion at 30 June 2026. - Each company uses its own label. Don't add them into one "AI capex" total that no company reports. ## What is a "capex line"? A capex line is where a company shows money committed to long-lived kit: land, buildings, power gear, servers, chips and networking. There is no single line called "AI capex" in any of these filings. The spend shows up in at least four places: - the cash-flow statement, as cash paid - lease notes, as buildings and halls contracted - payables, as kit delivered but not yet paid for - purchase commitments, as capacity rented from someone else For the cash clock in detail, see [cash capex, explained](https://www.sotkn.com/explained/cash-capex-explained/). For the later expense, see [GPU depreciation, explained](https://www.sotkn.com/explained/gpu-depreciation-explained/). For buying versus renting, see [capex vs opex](https://www.sotkn.com/explained/capex-vs-opex/). ## Which six lines should you watch? | # | Line | Where to find it | What it tells you | Who gets paid, and when | | - | ---------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | | 1 | **Cash paid for property and equipment** | Cash-flow statement, investing section. Microsoft calls it "additions to property and equipment"; Alphabet, Amazon and Meta call it "purchases of property and equipment" | The cash that left this quarter | Chip, memory, packaging, server, networking and construction vendors, on the invoice | | 2 | **Finance leases** | Microsoft includes them in its spoken capex figure; Meta adds "principal payments on finance leases" to its capex | Buildings and kit taken on lease, counted as capex | Landlords and developers, over the lease term | | 3 | **Leases not yet commenced** | Commitments note in the 10-Q | Halls already contracted that haven't started yet | Landlords, developers, and through them utilities and power-equipment makers, from commencement onward | | 4 | **Kit received but not yet paid for** | Supplemental cash-flow disclosures | Vendor credit: delivered now, cash out later | Vendors who have shipped and are waiting for cash | | 5 | **Rented third-party capacity** | Call commentary; contractual commitments note | Compute bought as a service. It's an operating cost, so it doesn't appear in capex | Neoclouds and other cloud providers, per contract or per hour | | 6 | **The full-year guide** | Press release (filed) or the call (spoken) | Direction of travel, and whether the definition has changed | Everyone above, in proportion | ### 1\. Cash paid for property and equipment This is the number most coverage leads with. The June-quarter prints: | Company | Quarter | Line, in the company's words | Print | Label | | --------- | --------------------------------------- | --------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------- | | Microsoft | Quarter to 30 Jun 2026 (fiscal Q4 FY26) | Additions to property and equipment | $35.8 billion | Reported | | Alphabet | Q2 2026 | Purchases of property and equipment | $44.9 billion | Reported | | Amazon | Q2 2026 | Purchases of property and equipment, less proceeds from property and equipment sales and incentives | $54.2 billion less $1.1 billion = $53.1 billion | Reported; the net figure is our calculation | | Meta | Q2 2026 | Purchases of property and equipment | $30.1 billion | Reported | ![Bar chart of June-quarter 2026 cash paid for property and equipment: Amazon $54.2 billion gross, Alphabet $44.9 billion, Microsoft $35.8 billion, Meta $30.1 billion, each in the company's own line name.](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/hyperscaler-capex-lines-cash-ppe-q2-2026.png) Line 1, June quarter 2026, in each company's own words. Source: company Q2 releases. On its Q2 call, Alphabet said about 60% of its technical-infrastructure spend that quarter went on servers and 40% on data centers and networking equipment. **Who gets paid.** The server share pays the companies that design accelerators, the foundry and advanced-packaging lines that build them, the high-bandwidth memory makers, and the server and rack assemblers. The rest pays builders, electrical and cooling gear makers, and optics and switch makers. See [who makes AI chips](https://www.sotkn.com/explained/who-makes-ai-chips/), [HBM](https://www.sotkn.com/stack/semiconductors/hbm/), [CoWoS packaging](https://www.sotkn.com/stack/semiconductors/cowos/) and [optics in an AI cluster](https://www.sotkn.com/explained/optics-networking-ai-cluster-explained/). These vendors are paid on the invoice. Their cash does not wait for the cloud hour to bill. ### 2\. Finance leases Microsoft's spoken capex figure for the June quarter was $41 billion, including $5.6 billion of finance leases "primarily for large datacenter sites". Cash paid for property and equipment was $35.8 billion. Meta's capex definition adds principal payments on finance leases: $0.96 billion in Q2, on top of $30.1 billion of purchases, for $31.08 billion. **Watch for a definition change at Microsoft.** From the start of fiscal 2027, Microsoft is extending the useful lives of its datacenters and office buildings from 15 to 25 years. On the 29 July call, its CFO said more future datacenter leases will shift from finance leases to operating leases as a result. Finance leases count in capex; operating leases don't. That lowered Microsoft's calendar-2026 capex expectation to about $175 billion, while the CFO said the investment plan itself was unchanged. So a lower Microsoft capex print this season can be an accounting change, not less building. **Our read:** compare like with like before calling it a cut. **Who gets paid.** Landlords and developers of [AI Data Centers](https://www.sotkn.com/stack/ai-data-centers/). They are paid rent over years from when the lease starts, not on a single invoice. The line a lease sits on doesn't change who gets paid; it changes when the payment shows up and where. ### 3\. Leases not yet commenced This line is a lease pipeline that is already signed but not yet in capex. - **Meta:** about $278.99 billion of operating and finance leases not yet commenced at 30 June 2026, for data centers, colocation and some network infrastructure. These leases start between the rest of 2026 and 2036\. Meta also signed about $68 billion of further data center leases in July 2026, expected to start in 2027 and 2028. - **Alphabet:** $85.2 billion of future lease payments on leases not yet commenced, mostly data centers, starting between 2026 and 2031. **Who gets paid.** Landlords and developers first, then the utilities and power-gear makers whose dates decide when those halls can start. See [how long it takes to build an AI data center](https://www.sotkn.com/explained/how-long-does-it-take-to-build-an-ai-data-center/). **Our read:** this pipeline is the slow part of the chain, and it is already contracted. ### 4\. Kit received but not yet paid for - **Amazon:** "increase in property and equipment acquired but not yet paid" of $10.7 billion in Q2 2026. - **Alphabet:** "property and equipment included in accrued liabilities and accounts payable" of $29.1 billion at 30 June 2026, against $10.6 billion a year earlier. **Who gets paid.** Vendors who have delivered and are waiting. A rising balance means cash will leave in a later quarter. It also means a quarter's cash print understates what was actually delivered in that quarter. ### 5\. Rented third-party capacity - **Alphabet:** on its 22 July call, Alphabet said it plans to expand its use of third-party capacity in Q3 "as a bridging strategy" while it builds its own, and that this would pressure Cloud margins in the near term. - **Meta:** non-cancelable commitments "mostly relate to third-party cloud capacity arrangements" and to servers, network infrastructure, data centers and Reality Labs hardware, with about $53.52 billion due in 2026 and $81.65 billion in 2027\. Meta also had contingent obligations to buy up to $14.72 billion of cloud capacity over five years. **Who gets paid.** [Neoclouds](https://www.sotkn.com/stack/neoclouds/) and other cloud providers, under contract or by the hour. It is a cost, not capex, so watch cost of revenue and margins rather than the capex line. Neither company names its providers in these passages, and we don't guess. See [what a neocloud is](https://www.sotkn.com/explained/what-is-a-neocloud/) and [neocloud vs hyperscaler](https://www.sotkn.com/explained/neocloud-vs-hyperscaler/). ### 6\. The full-year guide: filed or spoken? | Company | 2026 guide | Where it was given | Label | | --------- | ----------------------------------------------------------------------------------------------------------- | ---------------------------------- | ------ | | Alphabet | $195–205 billion, raised from $180–190 billion | Q2 call, 22 Jul 2026 (spoken) | Guided | | Meta | $130–145 billion including finance-lease principal, narrowed from $125–145 billion | Q2 release, 29 Jul 2026 (filed) | Guided | | Amazon | About $220 billion of cash capex, up from about $200 billion; the CEO said higher memory costs pushed it up | Q2 call, 30 Jul 2026 (spoken) | Guided | | Microsoft | About $175 billion for calendar 2026 after the lease shift; "over $50 billion" in the September quarter | Q4 FY26 call, 29 Jul 2026 (spoken) | Guided | **What's left for the second half (our calculation).** These are illustrations of remaining spend, not forecasts. - **Alphabet:** a $195–205 billion guide less $80.6 billion paid in the first half leaves $114.4–124.4 billion. - **Meta:** a $130–145 billion guide less $50.9 billion in the first half ($49.1 billion of purchases plus $1.8 billion of finance-lease principal) leaves $79.1–94.1 billion. - **Amazon:** about $220 billion less $96.3 billion net in the first half ($98.4 billion of purchases less $2.1 billion of proceeds and incentives) leaves about $123.7 billion. The September-quarter print is the first test of each path. ![Bar chart of first-half 2026 spend against full-year guides: Alphabet $80.6 billion of $195–205 billion, leaving $114.4–124.4 billion; Amazon $96.3 billion net of about $220 billion, leaving about $123.7 billion; Meta $50.9 billion of $130–145 billion, leaving $79.1–94.1 billion.](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/hyperscaler-capex-lines-h1-vs-guide-2026.png) What is left for the second half. Our calculation from company guides; illustrations, not forecasts. **Who gets paid.** Amazon tied its increase to memory prices, which is a direct read-across to the HBM and DRAM makers. See [HBM, explained](https://www.sotkn.com/explained/hbm-explained/) and the [Korea](https://www.sotkn.com/markets/korea/) door. ## The calendar Dates were checked on 13 Oct 2026. | Date | Event | Why it matters down the chain | Status | | --------------------------------------- | -------------------------------------------------------- | ---------------------------------------------------------------------------- | -------------------------------------- | | Thu 15 Oct 2026, 14:00 Taiwan time | TSMC Q3 2026 results | Foundry and advanced-packaging demand: the first supplier read of the season | Confirmed by TSMC | | Around Tue 27 Oct 2026 | SK hynix Q3 2026 results | HBM supply and pricing | Expected; no company notice seen | | Wed 28 Oct 2026, after the close | Microsoft fiscal Q1 FY27 results; call 2:30 p.m. Pacific | First print after the lease-definition change | Confirmed by Microsoft (7 Oct) | | Wed 28 Oct 2026; call 1:30 p.m. Pacific | Alphabet Q3 2026 results | First print after the raised guide and the third-party capacity bridge | Confirmed by Alphabet (6 Oct) | | Around Wed 28 Oct 2026 | Meta Q3 2026 results | Lease pipeline and the capex range | Expected; no Meta notice seen | | Thu 29 Oct 2026, 10:00 Korea time | Samsung Electronics full Q3 2026 results | Memory and foundry split behind preliminary profit | Confirmed by Samsung (8 Oct) | | Around Thu 29 Oct 2026 | Amazon Q3 2026 results | Cash capex against the \~$220 billion spoken guide | Expected; no Amazon notice seen | | Around Tue 17 Nov 2026 | Nvidia Q3 FY27 results | Accelerator demand after hyperscaler guides | Reported; no formal Nvidia notice seen | For more dated events, see the [Catalyst calendar](https://www.sotkn.com/catalyst/calendar/). ## Who gets paid down the chain, in order 1. **On the invoice:** accelerator designers, foundry and packaging, HBM makers, server and rack assemblers, and optics and switch makers. This is line 1. 2. **On progress payments:** builders, electrical, cooling and grid gear. This is line 1 and the data center share of capex. 3. **On a delay:** vendors carried in payables. This is line 4. 4. **Over years, from commencement:** landlords and developers. These are lines 2 and 3. 5. **Per hour or per contract:** neoclouds and other cloud providers. This is line 5, and it is a cost, not capex. 6. **Last:** the hyperscaler itself, once customers use live, powered capacity. ![Infographic of who gets paid from hyperscaler capex, in order: on the invoice (chips, memory, packaging, servers, optics), on progress payments (builders, power and cooling gear), on a delay (vendors in payables), over years from lease commencement (landlords, about $279 billion of Meta leases not yet commenced), per hour or contract (neoclouds), and last the hyperscaler itself.](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/hyperscaler-capex-lines-who-gets-paid.png) Who gets paid down the chain, in order. Roles only, not recommendations. Roles only. These are not recommendations, and we don't know which named supplier any hyperscaler paid in a given quarter. ## Where is the stuck step? Paying for kit isn't the same as switching it on. The cash in line 1 can print on time while halls wait for power, and while finished accelerators wait for matched memory and packaging. The [Stack board](https://www.sotkn.com/stack/) tracks which layer is binding now. **Our read:** this season, read line 1 against lines 3 and 4\. A big cash print alongside a growing lease pipeline and growing unpaid kit points to commitment running ahead of live capacity. ## Common misconceptions - **"A lower capex number means less building."** Not necessarily. Microsoft's useful-life change moves some future datacenter leases out of capex. - **"All four companies report the same capex."** They don't. Amazon nets proceeds and incentives, Meta adds finance-lease principal, and Microsoft's spoken figure includes finance leases. - **"Capex is where the neoclouds get paid."** Mostly not. Rented capacity is an operating cost. Watch cost of revenue and commitments. - **"Signed leases are this year's spend."** They aren't. Meta's leases not yet commenced start between the rest of 2026 and 2036. ## FAQ **What is the most important capex line to watch this earnings season?** Cash paid for property and equipment on the cash-flow statement, read alongside the lease and payables lines. Cash alone misses buildings already signed and kit delivered but not yet paid for. **Why might Microsoft's capex look lower this quarter?** From fiscal 2027, Microsoft extended its datacenter and office useful lives from 15 to 25 years. Its CFO said more future datacenter leases will be operating leases, which are not counted in capex. That lowered its calendar-2026 expectation to about $175 billion, with the investment plan otherwise unchanged. **What are "leases not yet commenced"?** Leases a company has signed for data centers or other assets that haven't started yet. Meta reported about $278.99 billion at 30 June 2026, starting between the rest of 2026 and 2036\. Alphabet reported $85.2 billion, starting between 2026 and 2031. **Where do neoclouds show up in hyperscaler results?** Usually as rented capacity: an operating cost and a contractual commitment, not capex. Alphabet said it would expand its use of third-party capacity in Q3 2026 as a bridge. Meta said its non-cancelable commitments mostly relate to third-party cloud capacity and infrastructure. **When do the big hyperscalers report Q3 2026?** Microsoft and Alphabet confirmed Wednesday 28 October 2026\. Amazon and Meta had not announced their dates when this page was checked. Third-party calendars expect late October. **Who gets paid first from hyperscaler capex?** Vendors paid on the invoice: chips, memory, packaging, servers and networking, then construction and power gear. Landlords are paid over years through leases. Neoclouds are paid as an operating cost. The hyperscaler is paid last, when customers use live capacity. **Is this a list of stocks to buy or sell?** No. Second Order Explained pages explain how money moves through the AI infrastructure stack. They do not give buy or sell calls. ## Markets and stack doors - **Layers:** [Hyperscalers](https://www.sotkn.com/stack/hyperscalers/) is where the capex is set. Sibling layers: [Semiconductors](https://www.sotkn.com/stack/semiconductors/), [Neoclouds](https://www.sotkn.com/stack/neoclouds/) and [AI Data Centers](https://www.sotkn.com/stack/ai-data-centers/). - **Doors:** [Taiwan](https://www.sotkn.com/markets/taiwan/) (foundry and packaging invoices) and [Korea](https://www.sotkn.com/markets/korea/) (HBM and memory). - **Daily:** [The Wire](https://www.sotkn.com/the-wire/), one dated number a day. ## How we check this - **Quarterly prints** come from each company's Q2 2026 results release or 10-Q, using that company's own line names. - **Guides from calls** are labeled spoken and dated: - Alphabet and Microsoft: their own published transcripts - Amazon: a published transcript of its 30 July call - **Meta's guide** comes from its filed release. - **Lease and commitment figures** come from the 10-Q notes. - **Earnings dates** are marked Confirmed only where the company itself announced them. Otherwise they are Expected or Reported. - **Our calculations** are the Amazon net figure and the second-half remainders, shown in full above. Last reviewed: 13 Oct 2026 · Next review: after Amazon's Q3 2026 results ## References 1. [Microsoft, FY26 Q4 earnings release, 29 Jul 2026](https://www.microsoft.com/en-us/Investor/earnings/FY-2026-Q4/press-release-webcast?ref=sotkn.com) — additions to property and equipment $35.802B in the quarter. 2. [Microsoft, FY26 Q4 earnings call transcript, 29 Jul 2026](https://www.microsoft.com/en-us/investor/events/fy-2026/earnings-fy-2026-q4?ref=sotkn.com) — capex $41B incl. $5.6B finance leases; cash paid for PP&E $35.8B; useful lives 15 to 25 years from FY27; CY2026 \~$175B; Q1 FY27 over $50B. 3. [Microsoft, earnings release date notice, 7 Oct 2026](https://news.microsoft.com/source/2026/10/07/microsoft-announces-quarterly-earnings-release-date-69/?ref=sotkn.com) — FY27 Q1 results 28 Oct 2026, webcast 2:30 p.m. PT. 4. [Alphabet, Q2 2026 earnings release (Exhibit 99.1), 22 Jul 2026](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000066/googexhibit991q22026.htm?ref=sotkn.com) — purchases of property and equipment $44.924B (Q2), $80.598B (H1). 5. [Alphabet, Form 10-Q for Q2 2026](https://s206.q4cdn.com/479360582/files/doc%5Ffinancials/2026/q2/GOOG-10-Q-Q2-2026.pdf?ref=sotkn.com) — PP&E in accrued liabilities and accounts payable $29.113B; leases not yet commenced $85.2B, commencing 2026–2031. 6. [Alphabet, Q2 2026 earnings call transcript, 22 Jul 2026](https://s206.q4cdn.com/479360582/files/doc%5Fevents/2026/Jul/22/2026%5FQ2%5FEarnings%5FTranscript.pdf?ref=sotkn.com) — 2026 capex $195–205B (from $180–190B); \~60% servers / 40% data centers and networking; third-party capacity as a Q3 bridge. 7. [Alphabet, Q3 2026 conference call date notice, 6 Oct 2026](https://abc.xyz/investor/news/news-details/2026/Alphabet-Announces-Date-of-Third-Quarter-2026-Financial-Results-Conference-Call-2026-8tpGZsLS6v/default.aspx?ref=sotkn.com) — call 28 Oct 2026, 1:30 p.m. PT. 8. [Amazon, Q2 2026 results release, 30 Jul 2026](https://ir.aboutamazon.com/news-release/news-release-details/2026/Amazon-com-Announces-Second-Quarter-Results/?ref=sotkn.com) — purchases of PP&E $54.208B (Q2), $98.411B (H1); proceeds and incentives $1.132B (Q2), $2.101B (H1); PP&E acquired but not yet paid +$10.7B (Q2). 9. [Amazon, Q2 2026 earnings call, 30 Jul 2026 (transcript via The Motley Fool)](https://www.fool.com/earnings/call-transcripts/2026/08/07/amazon-amzn-q2-2026-earnings-call-transcript/?ref=sotkn.com) — \~$220B 2026 cash capex, up from \~$200B, citing higher memory cost. 10. [Meta, Q2 2026 earnings release (Exhibit 99.1), 29 Jul 2026](https://www.sec.gov/Archives/edgar/data/1326801/000162828026050596/meta-06302026xexhibit991.htm?ref=sotkn.com) — capex incl. finance-lease principal $31.08B; purchases of PP&E $30.116B; 2026 range $130–145B. 11. [Meta, Form 10-Q for the quarter ended 30 Jun 2026](https://www.sec.gov/Archives/edgar/data/1326801/000162828026050705/meta-20260630.htm?ref=sotkn.com) — leases not yet commenced \~$278.99B (2026–2036); \~$68B July 2026 leases (2027–2028); commitments \~$53.52B (2026) and \~$81.65B (2027); contingent cloud capacity up to $14.72B. 12. [TSMC Investor Relations, Q3 2026 results page](https://investor.tsmc.com/english/quarterly-results/2026/q3?ref=sotkn.com) — earnings conference 15 Oct 2026, 14:00 Taiwan time. 13. [Samsung Electronics, notice of 3Q 2026 earnings release schedule, 8 Oct 2026](https://www.investegate.co.uk/announcement/rns/samsung-electronics-co-ltd-att---smsd/notice-of-3q-2026-earnings-release-schedule/9812151?ref=sotkn.com) — results and call 29 Oct 2026, 10:00 KST.