Alphabet’s CFO signals AI spending could top $300 billion as cash flow turns negative

Alphabet posted a second straight quarter of negative free cash flow and missed revenue estimates, and its finance chief hinted that capital spending may climb further in 2027 Alphabet is spending money faster than it makes it. The Google parent’s third-quarter 2026 results showed negative free cash flow of $9.1 billion. It was the second consecutive quarter in the red, a first for Alphabet since it went public more than two decades ago. Investors responded about as warmly as you would expect. The numbers behind the selloff Alphabet reported its quarterly earnings on October 28, 2026. Revenue came in at $127.6 billion, below what analysts had expected. Capital expenditures hit a record $51.4 billion for the quarter. Most of that went into AI compute, meaning the data centers, chips and supporting gear needed to train and run large models. The quarter also brought a miss on search revenue, the company’s core business. Alphabet reportedly missed on both the top and bottom lines for the first time in nearly four years. Shares were reportedly down 10% or more in intraday and after-hours trading following the release. The CFO’s spending roadmap Alphabet kept its full-year 2026 capital s...