Capital expenditures doubled year-over-year to USD 44.92 billion, driving free cash flow to negative USD 5.86 billion.
Alphabet reported its first-ever quarterly negative free cash flow at negative USD 5.86 billion, as capital spending surged to USD 44.92 billion, more than double the year-ago period. The increase was driven by heavy investment in artificial intelligence infrastructure and data centers.
Google Cloud revenue jumped 81.8% to USD 24.77 billion, exceeding expectations, but the company raised its full-year capital expenditure guidance again. Prior quarters showed positive free cash flow, with last year’s second quarter at USD 12.6 billion.
Shares fell about 3% in after-hours trading following the announcement.