Will D&A as a share of revenue rise year-over-year for at least 3 of 4 big hyperscalers in Q3 2027 vs Q3 2026?

Depreciation compresses margins

AI infrastructure spending outpaces revenue growth, so depreciation and amortization climb as a share of sales at most of the four largest hyperscalers, Microsoft, Alphabet, Amazon, and Meta, squeezing reported operating margins compared with the peak of the spending boom. During the capex cycle, high spending lifts revenues elsewhere in the market while costs are amortized slowly, temporarily boosting market-wide margins; once depreciation catches up, that boost fades and true cash economics show through.

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