Sector Report4 min read
Technology: 22 A-Grades, 16 Now Declining
Most tech companies still print cash. But the trend reversal is accelerating, and half the sector is headed the wrong direction.
Sep 21, 2026
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Free cash flow analysis, sector reports, and market insights
Most tech companies still print cash. But the trend reversal is accelerating, and half the sector is headed the wrong direction.
The sector keeps printing cash. Equinix keeps burning it. Nothing has changed since August.
Tobacco prints 45% margins while Walmart and Costco struggle to hit 3%. The sector split is getting wider.
Sixteen companies improving, median FCF margin at 9%. But three refiners stay broken despite improving trends.
Payments and exchanges print cash. The megabanks? Still burning it faster than they can explain.
Twenty companies, nineteen F-grades, and a sector median FCF margin of negative 9.9%. The trend data makes it even uglier.
Booking and Airbnb print 30%+ margins. Amazon burns cash. The sector's bifurcation is getting worse.
Pharma and devices keep printing cash at 15%+ margins. Health insurers can barely break 2%. The sector split is getting wider.
Seventy-three percent of industrials are improving. Boeing, UPS, and Johnson Controls are not.
Tech has the best grades and the worst trends. Twenty-two A-grades can't hide what's happening underneath.
Most REITs print cash at absurd margins. Equinix burns it faster than tech companies.
Tobacco prints 45% margins while Walmart barely clears 2%. Nine A-grades, but only tobacco and Monster look built to last.