Google reported Q2 2026 revenue of $119.8 billion, beating analyst expectations, but the company recorded its first negative free cash flow quarter due to massive spending on AI infrastructure. Operating cash flow rose 40% year-over-year to $39.1 billion, yet capital expenditures outpaced earnings.
Key revenue segments included Search at $63.3 billion, Cloud at $24.8 billion (up 23.8% from Q1), and YouTube ads at $11.1 billion. Despite strong revenue, the stock declined as investors reacted to the unprecedented cash flow deficit.
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