Google Reports First Negative Free Cash Flow Due to Massive AI Spending
Google/DeepMind
Google reported Q2 2026 revenue of $119.8 billion, beating expectations, but its stock fell. The company's AI-driven capital expenditures are so high that it recorded negative free cash flow of -$5.8 billion for the first time, as it spent $44.9 billion on AI infrastructure in the quarter.
Google's Q2 2026 financial results show total revenue of $119.8 billion, with search contributing $63.3 billion, Google Cloud $24.8 billion (up 23.8% from Q1), subscriptions/platforms/devices $12.9 billion, and YouTube ads $11.1 billion (up 12% from last quarter). Operating cash flow was $39.1 billion, a 40% increase from Q2 2025. However, capital expenditures on AI infrastructure have surged: the company previously guided $180-$190 billion for 2026, but now plans up to $205 billion. In Q2 alone, Google spent $44.9 billion on expanding its AI footprint, leading to negative free cash flow of -$5.8 billion.
- Abbreviations
- Q2 = second quarter — второй квартал
Source: Ars Technica —
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