Alphabet’s Cloud Boom Validated Its $200 Billion Capex Plan. Cash Flow Did Not.

Google Cloud growth accelerated to 82%, but negative $5.9 billion of free cash flow explains why investors initially sold the stock

What’s in This Article

Alphabet Confirmed the Capex Thesis
Table 1. Alphabet’s AI Growth and Cash-Flow Divergence
The Second-Half Spending Ramp
The EPS Headline Needs an Asterisk
Investor Takeaway

Alphabet Confirmed the Capex Thesis

Alphabet (GOOGL) raised its 2026 capital-expenditure guidance from $180–$190 billion to $195–$205 billion, placing the midpoint a…