Earnings
Home›Earnings›Results›Alphabet posts first negative free cash flow as AI spe…
Alphabet posts first negative free cash flow as AI spending accelerates
Alphabet said it raised its full-year spending plan to $195 billion to $205 billion, up from $180 billion to $190 billion.
Alphabet, the parent of Google, reported its first-ever quarter of negative free cash flow since going public in August 2004, as AI infrastructure spending outpaced cash generation in the April to June period, according to Yahoo Finance.
The company said it spent $44.9 billion on AI infrastructure, about $490 million per day, while generating $39.1 billion in cash during the same stretch, leaving it $5.9 billion short.
Financial results were still strong on revenue, with sales up 24% to $119.8 billion. Search and other revenue rose 17% to $63.3 billion, YouTube ads increased 13%, and Google Cloud revenue grew 82% to $24.8 billion.
Alphabet’s finance chief, Anat Ashkenazi, raised the company’s full-year spending target to a range of $195 billion to $205 billion, and indicated 2027 spending would be higher. Yahoo Finance also noted Alphabet’s share price fell 4.24% in after-hours trading after the spending-plan increase, despite revenue topping Wall Street expectations.