Google Q2 Capex Jumps 101% to $44.9B, Drives Negative Free Cash Flow; 2026 Guidance Raised
GOOG sits 69% above its 52-week low of $188.7 on elevated volume (2.1× avg).
Summary
Alphabet reported Q2 earnings with strong revenue and Google Cloud growth, but capital spending surged 101% year-over-year to $44.9 billion, resulting in negative free cash flow of $5.9 billion. Management also raised its 2026 capital expenditure guidance to $195-$205 billion, up from prior estimates. This significant increase in AI infrastructure investment and the resulting cash burn are weighing heavily on investor sentiment, causing the stock to drop 7.1%. This follows earlier announcements of massive AI expansion plans and an $80 billion equity raise. Other major tech companies reporting next week will be watched for similar trends in capex and free cash flow.
At the time of this announcement, GOOG was trading at $319.48 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.9T. The 52-week trading range was $188.70 to $404.47. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.