《Google Q2 Cloud Business Exceeds Expectations Again, But Negative Free Cash Flow Sparks Valuation Rethink》 Alphabet's Q2 earnings report shows that enterprise AI demand continues to accelerate: revenue of $119.8 billion beat expectations, Google Cloud grew 81.8% year-over-year, once again surpassing the most optimistic forecasts from buyers, and the advertising business remains solid overall. The company simultaneously raised its full-year capital expenditure forecast to $195–205 billion and expects significant investment increases through 2027, supporting TPU, AI servers, storage, optical communication, and the data center supply chain. However, the costs behind high growth are becoming more apparent: Q2 capital expenditures exceeded operating cash flow for the first time, turning free cash flow negative at $5.86 billion. Core EPS, excluding investment gains, also fell short of expectations. The market reacted with a roughly 3% drop in after-hours trading, reflecting investors' higher standards for evaluating AI giants. Read the full article: https://(wublock123.com)/articles/google-q2-cloud-beats-expectations-fcf-turns-negative-valuation-rethink-59255