Google reported $119.8 billion in revenue for Q2 2026, beating analyst forecasts, but its stock fell as the company posted its first-ever negative cash flow quarter due to massive AI infrastructure investments. Search engine advertising generated $63.3 billion, while Google Cloud revenue rose 23.8% to $24.8 billion, reflecting strong demand for AI services.
YouTube ads brought in $11.1 billion, up 12% from the previous quarter, partly due to extending ad lengths. Operating cash flow increased 40% year-over-year to $39.1 billion, yet capital expenditures outpaced that growth, leading to the negative cash flow.
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