On its July 22, 2026, Q2 earnings call, Alphabet said capital expenditure was $44.9 billion and quarterly free cash flow was negative $5.9 billion; trailing-12-month free cash flow was $53.3 billion.
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The Q2 call illustrates the cash-flow cost of AI infrastructure investment, while trailing-12-month free cash flow remained positive. The report treats this as a test of the investment cycle’s future returns, not proof that spending is uneconomic.
The Bureau of Labor Statistics reported that nonfarm payroll employment increased by 162,000 in August and unemployment was unchanged at 4.1%. June and July payroll estimates were revised to +31,000 and +21,000.
August CPI release reports persistent but lower core inflation
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Alphabet reports high infrastructure investment and negative quarterly free cash flow
[13]On its July 22, 2026, Q2 earnings call, Alphabet said capital expenditure was $44.9 billion and quarterly free cash flow was negative $5.9 billion; trailing-12-month free cash flow was $53.3 billion.
The Q2 call illustrates the cash-flow cost of AI infrastructure investment, while trailing-12-month free cash flow remained positive. The report treats this as a test of the investment cycle’s future returns, not proof that spending is uneconomic.
NVIDIA reports strong fiscal Q2 2027 revenue
[12]NVIDIA reported fiscal Q2 2027 revenue of $96.2 billion, up 106% year over year, and Data Center revenue of $89.0 billion, up 117%.
August US employment report shows moderate job growth
[9]The Bureau of Labor Statistics reported that nonfarm payroll employment increased by 162,000 in August and unemployment was unchanged at 4.1%. June and July payroll estimates were revised to +31,000 and +21,000.
August CPI release reports persistent but lower core inflation
[6]The August CPI release reported a 3.4% increase in the all-items index over 12 months and a 2.4% increase in the index excluding food and energy.
Federal Reserve raises policy-rate target range
[4]The FOMC raised the federal-funds target range by 25 basis points to 3.75%–4.00%. Its statement said inflation remained elevated.
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