Alphabet's Q2 Free Cash Flow Turns Negative at -$5.86B Amid AI Capex Surge
GOOG sits 45% above its 52-week low of $240.75.
Summary
Alphabet's Q2 free cash flow swung to -$5.86B as capex of $44.92B outpaced operating cash flow of $39.07B, underscoring the heavy AI infrastructure spending that already spooked investors in July. The company also released Gemini 4 Argon with API pricing set to double after Nov 30, and analysts now project $80–$100B in cumulative TPU-related revenue through 2028. A ~3-week delay in TPU v9 development due to a component redesign with 45–50% yield adds execution risk to that revenue ramp. This follows the July selloff when Alphabet raised its 2026 capex forecast to $205B, and the negative free cash flow figure quantifies the near-term cash burn. Watch for the Nov 30 API price increase and any updates on TPU v9 mass production timing.
At the time of this announcement, GOOG was trading at $350.10 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.3T. The 52-week trading range was $240.75 to $404.47. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.