Google's Q2 2026 revenue hit $119.8 billion, exceeding analyst expectations, but massive AI-related capital expenditures resulted in the company's first negative cash flow quarter. Search remained the largest revenue driver at $63.3 billion, while Google Cloud surged 23.8% from the previous quarter to $24.8 billion.
YouTube ads brought in $11.1 billion, up 12% after extending ad lengths. Operating cash flow rose 40% year over year to $39.1 billion, but spending growth outpaced earnings, leading to the cash flow deficit.
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