Google posts first negative free cash flow due to massive AI spending

Google has released its financial results for the second quarter of 2026. Total revenue was $119.8 billion, exceeding analyst expectations. Search brought in $63.3 billion, Google Cloud contributed $24.8 billion (up 23.8% compared to the first quarter), subscriptions, platforms, and devices generated $12.9 billion, and YouTube advertising added $11.1 billion. Operating cash flow was $39.1 billion, which is 40% higher than in the second quarter of 2025. However, capital expenditures on AI infrastructure in the second quarter reached $44.9 billion, exceeding operating cash flow, resulting in negative free cash flow of -$5.8 billion. Google had previously forecast capital expenditures of $180–190 billion for 2026, but now plans to spend up to $205 billion. For comparison, the company spent $91 billion in 2025.