Google Reports First-Ever Negative Free Cash Flow Due to Record AI Infrastructure Spend

06:00 - 27.07.2026


July 27, Fineko/abc.az. Google's parent company, Alphabet, reported negative quarterly free cash flow of -$5.9 billion for the second quarter of 2026—marking the first negative cash flow reading in its 22-year history as a publicly traded company.

The cash deficit was driven by unprecedented capital expenditures, which surged to $44.9 billion in a single quarter as the company aggressively expands its AI data centers, servers, and custom silicon capacity.

Alphabet also raised its full-year 2026 capital spending outlook to between $195 billion and $205 billion, representing an additional $15 billion increase over previous guidance. Despite the cash burn, Alphabet's total quarterly revenue reached $119.8 billion, bolstered by an 82% year-over-year surge in Google Cloud revenue to $24.8 billion.