Alphabet has updated its full-year 2026 capital expenditure guidance to a range of $195 billion to $205 billion, with spending aimed mainly at AI infrastructure, according to comments from Chief Financial Officer Anat Ashkenazi cited by Techub News. The company’s second-quarter capital expenditure reached $44.9 billion, equal to 29.7% of revenue over the past 12 months, well above its historical average of 12.2%.
In the same quarter, Google Services posted $94.5 billion in revenue, while Google Cloud generated $24.8 billion, up 82% year over year. Alphabet also said its cloud backlog had climbed to $514 billion, with more than half expected to be recognized as revenue within two years.
The spending push comes even as free cash flow was negative $5.9 billion in the second quarter and debt rose from about $16 billion a year earlier to nearly $100 billion. Alphabet still held $242.5 billion in cash and marketable securities. CEO Sundar Pichai said AI investment is reshaping every part of the company’s business, while the market is watching whether the heavy outlay can turn into growth on schedule.
Alphabet has revised its full-year 2026 capital expenditure guidance to $195 billion to $205 billion, with the bulk of the spending set aside for AI infrastructure, according to Techub News, citing Chief Financial Officer Anat Ashkenazi.
Second-quarter capital expenditure came in at $44.9 billion, equivalent to 29.7% of revenue over the past 12 months. That compares with a historical average of 12.2%.
Second-quarter revenue and cloud backlog
During the quarter, Google Services reported revenue of $94.5 billion. Google Cloud brought in $24.8 billion, up 82% from a year earlier. The company also said its cloud backlog had reached $514 billion, and more than half of that amount is expected to convert into revenue within two years.
Cash flow pressure and balance sheet position
Free cash flow was negative $5.9 billion in the second quarter, while debt increased from about $16 billion a year earlier to nearly $100 billion. Even so, Alphabet still held $242.5 billion in cash and marketable securities.
CEO Sundar Pichai said AI investment is redefining every aspect of the company’s business. The market is now focused on whether Alphabet’s large AI outlays can translate into growth on schedule.
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