Google shares crash 13% after $9 billion cash burn sparks AI spending fears

Alphabet shares fell 13.4% after quarterly net profit declined 25% year on year to $26.17 billion and adjusted EPS of $2.67 missed the roughly $3.02 consensus, while revenue rose 25% to $127.58 billion, slightly below expectations. Negative free cash flow reached $9.1 billion as capital expenditure more than doubled to $51.4 billion, with 2026 spending guidance maintained at $195 billion to $205 billion. Google Cloud revenue jumped 103% to $30.71 billion, but Search and other advertising growth slowed to 12% and advertising revenue missed expectations.