tech
Google just had its first negative cash flow quarter due to massive AI spending
Google continues to report big quarterly revenue, but its AI spending has skyrocketed.
TL;DR
- Google's Q2 2026 revenue reached $119.8 billion, surpassing analyst expectations.
- Search remained the largest revenue source at $63.3 billion.
- Google Cloud revenue grew by 23.8% to $24.8 billion.
- The company reported its first negative free cash flow of -$5.8 billion due to increased AI spending.
- Capital expenditures for AI infrastructure are projected to be as high as $205 billion in 2026.
- Google's stock price declined following the financial results announcement.