Google’s Profits Look a Little Terrifying Under the Hood

Alphabet reported a jump in quarterly profit, but much of it came from gains on investments rather than core operating revenue.

The company raised its 2026 capex outlook, signaled even higher spending in 2027, and posted negative free cash flow for the first time as a public company.

Investors sold the stock after the report, reflecting concern that AI-era profits may be tied to paper gains while cash flow weakens.

The results added to worries that the AI boom could be looking more like a bubble than a sustainable growth story.