Google's Free Cash Flow Turns Negative for First Time Since 2004 as AI Capex Hits $44.9B

MSFT0.06%
META-1.78%
AMZN-0.64%
According to Maeil Economics, Google's free cash flow turned negative in the second quarter of 2026 for the first time since going public in 2004, as capital expenditure of $44.9 billion exceeded operating cash flow of $39.1 billion. The company's cloud revenue surged 82% year-over-year to $24.8 billion, but the investment required to support generative AI demand outpaced profit generation. Alphabet stock fell 6% on July 23 following the earnings disclosure. Google raised its full-year 2026 capex guidance to $195–205 billion and indicated spending would increase further in 2027, as each user query demands additional GPU processing and server capacity. Microsoft, Meta, and Amazon are set to report earnings on July 30–31.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments