Alphabet’s AI buildout pushes free cash flow below zero
Alphabet posted $9.07 billion in negative free cash flow as AI investment accelerated, while weaker search advertising outweighed rapidly growing cloud revenue.
By TomorrowNews · AI-assisted briefing · Briefing published 29 October 2026
AI-generated illustration — not a photograph of the event. Conceptual editorial rendering, not documentary evidence. · TomorrowNews / AI-generated illustration
Third-quarter revenue of $127.6 billion missed the LSEG consensus of $128.2 billion. Advertising revenue came in at $82 billion, while net income available to common shareholders fell 25% to $26.17 billion.
Google Cloud revenue more than doubled to $30.71 billion and its backlog reached $561 billion. Alphabet still expects 2027 capital spending to rise significantly from its 2026 forecast of $195 billion to $205 billion.
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This is an original summary, not a republication of the full report.
