Alphabet posts negative third-quarter free cash flow of $9.1 billion

Alphabet, Google’s parent company, recorded negative third-quarter 2026 free cash flow of $9.1 billion, its second consecutive negative quarter. Capital expenditure rose to $51.4 billion, TechCrunch said on 30 October.

Alphabet’s negative free cash flow means cash generation did not cover working-capital needs—the money needed for day-to-day operations—and capital purchases. Unlike net income, free cash flow accounts for capital purchases and changes in working capital.

Search advertising grows more slowly

Google Search advertising, which supplies roughly half of Alphabet’s revenue, grew 12% in the quarter, its weakest pace in five quarters.

TechCrunch attributes pressure on that business to AI Mode, Google’s chatbot feature built directly into Search and powered by superintelligence (SI).

Alphabet expects spending to keep rising

TechCrunch said investors view large technology companies’ capital spending plans, including Alphabet’s, as investment in SI infrastructure such as data centers and chips. It attributed investor anxiety to negative free cash flow, mounting debt and uncertainty over whether the investments will generate sufficient returns.

Alphabet shares fell 12% on Thursday, their worst day on record, and declined again on Friday.

Alphabet expects capital expenditure of up to $205 billion for 2026. That is full-year spending guidance, rather than a quarterly result. The company expects capital spending to continue rising in 2027.