Alphabet reports third-quarter results on Oct. 28, and the article argues operating cash flow is the metric to watch most closely. In the second quarter, the company spent $44.9 billion on property and equipment against $39.1 billion of operating cash flow, leaving negative free cash flow of $5.9 billion, after $24 billion two quarters earlier, and it raised $49.6 billion in stock and $20.3 billion in debt in June. Google Cloud revenue grew 82% to $24.8 billion and cloud operating income more than tripled to $8.8 billion, yet operating cash flow fell from $45.8 billion in the first quarter, partly due to a nearly $7 billion inventory build and higher receivables. Management raised full-year capex guidance to $195–205 billion from $180–190 billion, according to Bloomberg Law, while trailing 12-month operating cash flow was $185.7 billion. The author says the cloud results merit patience, and a return toward the $45–50 billion range seen in late 2025 and early 2026 would support the view that AI spending is self-funded, while flat or lower cash flow would leave it financed by shareholders.
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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/26/2026 | 316.89 |
| Change that session | -1.04% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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