Alphabet’s Second-Quarter Financials
Alphabet (NASDAQ:GOOG, GOOGL) reported that its second-quarter capital expenditures reached $44.9 billion, exceeding its operating cash flow, resulting in a free cash flow deficit of $5.9 billion. The company expects full-year capital expenditures to be between $195 billion and $205 billion, an increase from previous estimates of $180 billion to $190 billion.
Approximately 60% of the second-quarter spending was allocated to servers, making it the largest single budget item. Bloomberg reported that prices for AI servers using Nvidia chips are projected to rise by over 15% for systems shipping in early 2027, driven primarily by increased memory costs.
Alphabet’s Google Cloud revenue grew 82% year-over-year, reaching $24.8 billion in the second quarter, while total revenue increased 24% to $119.8 billion. The company held $242.5 billion in cash and marketable securities as of the end of June, indicating significant liquidity, despite current cash flow pressures.
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