Alphabet Raises 2026 Capex Forecast by $15B to $190B-$205B, Posts First Negative Quarterly FCF

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According to CNBC Investing Club, Alphabet raised its 2026 capital expenditure guidance by $15 billion at the midpoint to a range of $190 billion to $205 billion on Wednesday evening, signaling continued heavy investment in artificial intelligence infrastructure. The company's second-quarter free cash flow turned negative for the first time in its history, posting outflows of $5.8 billion. Alphabet shares fell 7% on Thursday following the earnings announcement and were down nearly 8% over the past five trading days. The heavier capex commitment has raised investor concerns about cash flow sustainability, even as Google Cloud revenue surged 82% year-over-year. Meta, Amazon, and Microsoft are set to report earnings next week, with market focus centering on their capital expenditure trends and free cash flow generation amid similar infrastructure spending pressures.
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