Google just had its first negative cash flow quarter due to massive AI spending

Google reported $119.8 billion in revenue for Q2 2026, exceeding expectations, with significant contributions from search, cloud, and YouTube ads. However, the company experienced its first-ever negative free cash flow of -$5.8 billion due to unprecedented capital expenditures on AI infrastructure, projected to reach up to $205 billion for the year.

• 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.
  Continue reading https://arstechnica.com/google/2026/07/google-just-had-its-first-negative-cash-flow-quarter-ever-due-to-massive-ai-spending/