Alphabet Q2 Free Cash Flow Turns Negative — First Red Quarter of the AI Buildout

Alphabet reported negative free cash flow of -$5.9 billion in Q2 2026, the first negative quarter since the AI infrastructure buildout began. Operating cash flow held at $39.1B for the quarter, but property and equipment purchases of $44.9B overwhelmed it. TTM free cash flow dropped to $53.3B from $185.7B in operating cash flow. With FY2026 capex now guided to ~$205B, the cash flow strain will only intensify through year-end.