Alphabet reported second-quarter revenue of $119.8 billion. This represents a 24% year-over-year increase that beat analyst estimates.
Google Cloud revenue surged 82% to $24.8 billion. High demand for AI infrastructure and solutions drove this segment growth.
Alphabet shares fell approximately 4% in after-hours trading. Investors reacted to escalating capital expenditures on artificial intelligence.
The company raised its 2026 spending outlook to as high as $205 billion. These investments resulted in a negative free cash flow of $5.9 billion. This marks the first negative free cash flow in the company's history.