Alphabet Projected to Hit Negative Free Cash Flow Amid AI Infrastructure Surge

Key Facts

1Alphabet's capital expenditures spiked 100% year over year in Q2.

2Analysts expect the company to report a negative free cash flow of $32.4 billion in 2027.

Alphabet's capital expenditures spiked 100% year over year in the second quarter, according to The Motley Fool. Analysts expect the company to report a negative free cash flow of $32.4 billion in 2027, marking a significant shift in the financial profile of the Google parent company.

GOOGL closed at $343.5 on October 2, 2026, as the firm doubles its capital investment to build out AI capabilities. Among its peers, MSFT closed at $517.53 and META closed at $728.08 on October 2, 2026, amid an industry-wide race to secure dominance in AI infrastructure and cloud services.