Alphabet Google Cloud 82 percent growth Q2 2026 record capex negative free cash flow
Alphabet $GOOGL grew Q2 revenue 24% to $119.8 billion as Google Cloud jumped 82% to $24.8 billion. Capex hit $44.9 billion and free cash flow went negative $5.9 billion. Alphabet raised 2026 capex guidance to as much as $205 billion. Shares fell after hours, per CNBC.
Alphabet $GOOGL reported second-quarter revenue up 24% to $119.8 billion, driven by Google Cloud revenue jumping 82% to $24.8 billion on AI infrastructure demand, according to CNBC. Despite the growth, capital expenditure hit $44.9 billion for the quarter alone, pushing free cash flow into negative territory at negative $5.9 billion. Alphabet raised its full-year 2026 capex guidance to as much as $205 billion, up from prior projections, and investors sold the stock down after hours. The numbers mark a shift for a company long known as a reliable cash generator: AI infrastructure costs are now large enough to outpace even Google's own operating cash flow in a given quarter, a dynamic worth watching as more tech giants report similar spending ramps this earnings season.