Alphabet Lifts 2026 Capex Forecast, Pressure Builds on Big Tech Spending

According to CNBC, Alphabet raised its 2026 capital expenditure forecast by $15 billion at the midpoint to a range of $190 billion to $205 billion and said spending will rise further in fiscal 2027. The company also posted second-quarter free cash flow outflows of $5.8 billion, its first negative quarterly reading, even as Google Cloud revenue jumped 82% from a year earlier. The report said investors will focus on capex when Meta Platforms, Amazon and Microsoft report next week, as the three companies continue to invest heavily in AI infrastructure while facing pressure on free cash flow. Meta Platforms last quarter lifted its 2026 capital spending guidance to between $125 billion and $145 billion, up $10 billion at the midpoint, and shares fell 9% after the report. Amazon left its 2026 capex forecast unchanged at around $200 billion, while Microsoft outlined roughly $190 billion in expected capital spending for calendar 2026 in April. The article also said Alphabet, Meta, Amazon and Microsoft shares were lower this week.