Google has reported its monetary outcomes for the second quarter of 2026 (PDF), and as traditional, the search big raked in an unfathomable amount of cash. Google noticed whole income of $119.8 billion, beating analyst expectations by a snug margin. Regardless of that, the corporate’s inventory has taken a success. Together with all that income, Google has introduced an extra enhance in its AI-fueled capital expenditures (or capex). The corporate is definitely spending a lot on AI infrastructure that it has unfavorable money stream for the primary time.
Search was the biggest chunk of Google’s earnings, accounting for $63.3 billion. Google Cloud pulled in $24.8 billion, a big 23.8 p.c enhance from the primary quarter. This reveals there may be large demand for Google’s AI companies. Google additionally earned $12.9 billion from its subscriptions, platforms, and units portfolio, in addition to $11.1 billion from YouTube advertisements. The corporate managed to goose that final one by greater than 12 p.c since final quarter because it made YouTube advertisements even longer.
A major chunk of Google’s income comes from investments. If you subtract these non-cash earnings, Google’s working money stream for Q2 2026 was about $39.1 billion. That’s not probably the most the corporate has ever seen, nevertheless it’s a wholesome 40 p.c enhance from Q2 2025. The issue is that Google’s spending has additionally gone up—loads.
Earlier than this newest spherical of economic updates, Google instructed buyers it was anticipating $180 billion to $190 billion in capital expenditures for 2026. Like different AI-obsessed tech behemoths, Google is burning money on constructing and operating the info facilities powering its AI fashions. These numbers have been already effectively above the $91 billion Google spent in 2025. The corporate now says it’s planning to spend as a lot as $205 billion on infrastructure in 2026.
On account of its rising AI calls for, Google studies it spent $44.9 billion increasing its AI footprint within the second quarter, and also you don’t want an accounting diploma to know which quantity is bigger. With $39.1 billion in money earnings, this spending left Google with -$5.8 billion free money stream.