Alphabet Reports Negative Free Cash Flow of $5.9bn Amid AI Costs

Published on 7/23/2026 · Source: bbc.co.uk

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Alphabet (GOOGL) reported a negative free cash flow of $5.9 billion for the first time in a decade, primarily due to rising expenditures on artificial intelligence, which are expected to reach up to $205 billion this year. The company's quarterly revenue hit $119.8 billion, reflecting a 23% increase year-over-year. In the second quarter, Alphabet spent $45 billion, with 60% allocated to servers and 40% to data centers. Following this news, Alphabet's stock fell 4% in after-hours trading, indicating investor concern over high spending levels.

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About Alphabet Inc. (Class A) (GOOGL)

Alphabet is the parent of Google, generating most of its revenue from search and advertising while expanding in cloud computing, YouTube, and AI. Class A shares (GOOGL) carry voting rights.

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