Alphabet Lifts Capex to $205 Billion as Cash Flow Turns Negative
Yahoo Finance ·
Alphabet Lifts Capex to $205 Billion as Cash Flow Turns Negative Renato Neves, CFA Thu, July 23, 2026 at 8:33 AM EDT 1 min read GOOG This article first appeared on GuruFocus . Alphabet ( NASDAQ:GOOGL ) fell 3.71% in premarket after reporting second-quarter revenue of $119.8 billion, up 24% and ahead of the $116.93 billion analysts expected , while adjusted earnings of $2.85 a share came in just under the $2.89 forecast. Reported diluted EPS of $9.11 was flattered by a $99.0 billion net gain on equity securities, largely unrealized. The operating business performed. Google Cloud revenue rose 82% to $24.8 billion and its operating income more than tripled to $8.8 billion. Search and other grew 17% to $63.3 billion, YouTube ads rose 13%, and consolidated operating margin expanded two points to 34%. Capital expenditure doubled to $44.9 billion, exceeding operating cash flow of $39.1 billion and pushing free cash flow to a deficit of $5.9 billion, against $10.1 billion generated in the first quarter. Alphabet raised its 2026 capex forecast to $195 billion to $205 billion, from $180 billion to $190 billion. CFO Anat Ashkenazi told analysts the company remains "in a supply-constrained environment." Alphabet repurchased no stock in the quarter, against $13.2 billion a year earlier. It instead raised $49.6 billion issuing stock and mandatory convertible preferred, and $20.3 billion from senior notes. Long-term debt has more than doubled since December, to $98.2 billion.
AI 시장 분석
Alphabet reported second-quarter revenue of $119.8 billion, beating expectations, but capital expenditures surged to $44.9 billion, resulting in a negative free cash flow of $5.9 billion. Consequently, the company raised its full-year capex forecast to up to $20.5 billion and suspended shareholder returns, causing its share price to drop by 3.71% in pre-market trading. Investors are closely monitoring the impact of soaring AI infrastructure investments on short-term financial health.
상승 영향
- Cloud — Google Cloud revenue surged 82% and operating profit expanded more than three times, proving strong earnings growth.
- AI — Despite supply constraint environments, capex was significantly increased to $20.5 billion, firmly solidifying leadership in AI infrastructure.
하락 영향
- Big Tech — Massive capital expenditures turned free cash flow into a deficit, and share repurchases were suspended, increasing short-term financial burdens.
AI가 생성한 분석으로 투자 자문이 아닙니다.
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