Cash conversion efficiency appears pressured as the OCF/NI ratio declined to 0.58 in 2026Q1, reflecting the impact of heavy capital deployment and non-operating accounting items on cash generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 164.71B | 164.71B | 125.3B | 101.75B | 91.5B | 91.65B | 65.12B | 54.52B | 47.97B | 37.09B | 36.04B | 26.02B | 22.38B | 18.66B | 16.62B | 14.56B | 11.08B | 9.32B | 7.85B | 5.78B | 3.58B | 2.46B | 977.04M | 395.44M | 155.26M |
| Operating CF Margin % | - | 40.88% | 35.8% | 33.1% | 32.35% | 35.57% | 35.68% | 33.68% | 35.06% | 33.46% | 39.92% | 34.7% | 33.9% | 33.61% | 36.1% | 38.42% | 37.79% | 39.39% | 36.03% | 34.8% | 33.76% | 40.07% | 30.64% | 26.98% | 35.33% |
| Operating CF Growth % | 95.84% | 31.46% | 23.15% | 11.2% | -0.17% | 40.73% | 19.45% | 13.65% | 29.33% | 2.93% | 38.47% | 16.3% | 19.92% | 12.28% | 14.1% | 31.44% | 18.94% | 18.63% | 35.97% | 61.3% | 45.58% | 151.72% | 147.07% | 154.69% | - |
| Net Income | 160.21B | 132.17B | 100.12B | 73.8B | 59.97B | 76.03B | 40.27B | 34.34B | 30.74B | 12.66B | 19.48B | 16.35B | 14.44B | 12.92B | 10.74B | 9.74B | 8.51B | 6.52B | 4.23B | 4.2B | 3.08B | 1.47B | 399.12M | 105.65M | 99.66M |
| Depreciation & Amortization | 21.14B | 21.14B | 15.31B | 11.95B | 15.93B | 12.44B | 13.7B | 11.78B | 9.04B | 6.92B | 6.14B | 5.06B | 4.98B | 3.94B | 2.96B | 1.85B | 1.4B | 1.52B | 1.5B | 967.66M | 571.94M | 293.81M | 148.47M | 55.05M | 28.98M |
| Stock-Based Compensation | 24.95B | 24.95B | 22.79B | 22.46B | 19.36B | 15.38B | 12.99B | 10.79B | 9.35B | 7.68B | 6.7B | 5.2B | 4.28B | 3.34B | 2.69B | 1.97B | 1.38B | 1.16B | 1.12B | 868.65M | 458.1M | 200.71M | 278.75M | 229.36M | 21.64M |
| Deferred Taxes | 8.35B | 8.35B | -5.26B | -7.76B | -8.08B | 1.81B | 1.39B | 173M | 778M | 258M | -38M | -179M | -104M | -437M | -266M | 343M | 9M | -268.06M | -224.65M | -164.21M | 0 | 0 | 191.57M | 0 | 0 |
| Other Non-Cash Items | -35.77B | -39.46B | 748M | 5.15B | 6.55B | -12.48B | -5.05B | -3.39B | -6.84B | 331M | 449M | -2M | -1.59B | -1.07B | -404M | 30M | -106M | -110.54M | 903.76M | -418.95M | -569.26M | 455.76M | 682.66M | 11.62M | 0 |
| Working Capital Changes | 13.87B | 17.57B | -8.41B | -3.85B | -2.23B | -1.52B | 1.83B | 819M | 4.91B | 9.25B | 3.3B | -409M | 364M | -31M | 898M | 630M | -99M | 485.99M | 327.23M | 318.55M | 42.28M | 43.74M | -253.21M | -6.23M | 4.99M |
| Change in Receivables | 948M | 948M | -5.89B | -7.83B | -2.32B | -9.1B | -6.52B | -4.34B | -2.17B | -3.77B | -2.58B | -2.09B | -1.64B | -1.31B | -787M | -1.16B | -1.13B | -504.04M | -334.46M | -837.25M | 0 | 0 | -156.93M | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 5.81B | 7.82B | 7.89B | 3.68B | 2.42B | 1.62B | 1.46B | -234M | 301M | 792M | 545M | 662.84M | 205.78M | 270.53M | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -132M | -132M | 359M | 664M | 707M | 283M | 694M | 428M | 1.07B | 731M | 110M | 203M | 436M | 605M | -499M | 101M | 272M | 33.64M | -211.54M | 70.14M | 0 | 0 | -13.52M | 0 | 0 |
| Cash from Investing | -120.29B | -120.29B | -45.54B | -27.06B | -20.3B | -35.52B | -32.77B | -29.49B | -28.5B | -31.4B | -31.16B | -23.71B | -21.05B | -13.68B | -13.06B | -19.04B | -10.68B | -8.02B | -5.32B | -3.68B | -6.9B | -3.36B | -1.9B | -313.95M | -109.72M |
| Capital Expenditures | -91.45B | -91.45B | -52.53B | -32.25B | -31.48B | -24.64B | -22.28B | -23.55B | -25.14B | -13.18B | -10.21B | -9.91B | -10.96B | -7.36B | -3.27B | -3.44B | -4.02B | -809.89M | -2.36B | -2.4B | -1.9B | -838.22M | -319M | -176.8M | -37.2M |
| CapEx % of Revenue | 21.64% | 22.69% | 15.01% | 10.49% | 11.13% | 9.56% | 12.21% | 14.55% | 18.37% | 11.89% | 11.31% | 13.22% | 16.6% | 13.25% | 7.11% | 9.07% | 13.7% | 3.42% | 10.82% | 14.48% | 17.94% | 13.65% | 10% | 12.06% | 8.46% |
| Acquisitions | -1.59B | -1.59B | -2.93B | -495M | -6.97B | -2.62B | -738M | -2.52B | -1.49B | -287M | -986M | -236M | -4.5B | 1.08B | -10.57B | -1.9B | -1.07B | -108.02M | -3.32B | -906.65M | -402.45M | -101.31M | -21.96M | -39.96M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -3.07B | -2.37B | -2.67B | -1.05B | 1.59B | 541M | 68M | 589M | 98M | 1.52B | -2.19B | -350M | 1.4B | -299M | -334M | -354M | 2.36B | 0 | 0 | 0 | 0 | 0 | -36.91M | 0 | 99K |
| Cash from Financing | -37.39B | -37.39B | -79.73B | -72.09B | -69.76B | -61.36B | -24.41B | -23.21B | -13.18B | -8.3B | -8.33B | -3.68B | -1.44B | -857M | 1.23B | 807M | 3.05B | 233.41M | 87.57M | 403.07M | 2.97B | 4.37B | 1.19B | 8.09M | -5.47M |
| Debt Issued (Net) | 32.14B | 32.14B | 888M | -760M | -1.2B | -1.24B | 9.66B | -268M | -61M | -86M | -1.33B | -23M | -18M | -557M | 1.33B | 726M | 3.46B | 0 | 0 | 0 | 0 | -1.43M | -4.71M | -7.39M | -7.74M |
| Equity Issued (Net) | -48.82B | -45.71B | -62.22B | -61.5B | -59.3B | -50.27B | -31.15B | -18.4B | -9.07B | -4.85B | -3.69B | -1.78B | 0 | 0 | 0 | 0 | -801M | 0 | 0 | 0 | 2.06B | 4.29B | 1.16B | 0 | 0 |
| Dividends Paid | -10.05B | -10.05B | -7.36B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -45.71B | -45.71B | -62.22B | -61.5B | -59.3B | -50.27B | -31.15B | -18.4B | -9.07B | -4.85B | -3.69B | -1.78B | 0 | 0 | 0 | 0 | -801M | 0 | -71.52M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -10.66B | -13.77B | -11.04B | -9.83B | -9.27B | -9.85B | -2.92B | -4.54B | -4.04B | -3.37B | -3.3B | -2.42B | -1.42B | -300M | -99M | 81M | 388M | 233.41M | 87.57M | 403.07M | 902.85M | 85.03M | 38.24M | 15.48M | 2.26M |
| Net Change in Cash | 7.24B | 7.24B | -582M | 2.17B | 934M | -5.52B | 7.97B | 1.8B | 5.99B | -2.2B | -3.63B | -1.8B | -551M | 4.12B | 4.79B | -3.65B | 3.43B | 1.54B | 2.58B | 2.54B | -332.5M | 3.45B | 277.88M | 91.24M | 40.08M |
| Free Cash Flow | 73.27B | 73.27B | 72.76B | 69.5B | 60.01B | 67.01B | 42.84B | 30.97B | 22.83B | 23.91B | 25.82B | 16.11B | 11.42B | 11.3B | 13.35B | 11.13B | 7.06B | 8.51B | 5.49B | 3.37B | 1.68B | 1.62B | 658.05M | 218.64M | 118.07M |
| FCF Margin % | 17.34% | 18.18% | 20.79% | 22.61% | 21.22% | 26.01% | 23.47% | 19.14% | 16.69% | 21.57% | 28.61% | 21.48% | 17.3% | 20.36% | 28.99% | 29.35% | 24.09% | 35.97% | 25.21% | 20.32% | 15.82% | 26.41% | 20.63% | 14.92% | 26.86% |
| FCF Growth % | -2.16% | 0.69% | 4.7% | 15.81% | -10.45% | 56.41% | 38.33% | 35.65% | -4.5% | -7.42% | 60.31% | 41.1% | 1.03% | -15.32% | 19.94% | 57.54% | -16.97% | 54.82% | 62.91% | 101.02% | 3.49% | 146.37% | 200.97% | 85.19% | - |
| FCF per Share | 5.99 | 5.99 | 5.85 | 5.46 | 4.56 | 4.94 | 3.12 | 2.22 | 1.62 | 1.70 | 1.85 | 1.16 | 0.83 | 0.83 | 1.00 | 0.85 | 0.55 | 0.67 | 0.43 | 0.27 | 0.14 | 0.14 | 0.06 | 0.02 | 0.01 |
| FCF Conversion (FCF/Net Income) | 0.46x | 1.25x | 1.25x | 1.38x | 1.53x | 1.21x | 1.62x | 1.59x | 1.56x | 2.93x | 1.85x | 1.59x | 1.58x | 1.47x | 1.55x | 1.50x | 1.30x | 1.43x | 1.86x | 1.37x | 1.16x | 1.68x | 2.45x | 3.74x | 1.56x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 69M | 84M | 84M | 96M | 86M | 72M | 74M | 40M | 0 | 0 | 1.56M | 1.34M | 257K | 216K | 709K | 1.74M | 2.29M |
| Taxes Paid | 0 | 0 | 0 | 19.16B | 18.89B | 13.41B | 4.99B | 8.2B | 5.67B | 6.19B | 1.64B | 3.65B | 3.14B | 1.93B | 2.03B | 1.47B | 2.17B | 1.9B | 1.22B | 882.69M | 537.7M | 153.63M | 183.78M | 247.42M | 73.76M |
Capital intensity vs margins
According to recent quarterly filings, Alphabet's OCF/NI ratio dropped to 0.58 in 2026Q1, a significant deviation from the historical average, suggesting that reported net income is increasingly decoupled from actual cash generation due to non-operating gains or significant shifts in accrual-based accounting treatments.
The sharp decline in the OCF/NI ratio warrants close scrutiny, as it indicates that a larger portion of reported earnings is not being converted into liquid operating cash. Investors should monitor whether this divergence is a temporary accounting anomaly or a structural shift in the quality of earnings as the company scales its AI-heavy infrastructure.
As reported in financial statements, Alphabet's FCF margin fluctuated significantly over the last ten quarters, hitting a low of 9.1% in 2023Q4 before reaching 21.6% in 2025Q4, reflecting the company's aggressive and uneven investment cycle in compute infrastructure and data center capacity expansion.
The volatility in free cash flow margins highlights the tension between maintaining core profitability and funding the massive capital requirements of the AI transition. This trend suggests that while the business remains highly profitable, its ability to generate consistent free cash flow is currently constrained by the timing of heavy infrastructure deployments.
Based on Alphabet's reported figures, the CapEx/Revenue ratio surged to 24.5% in 2025Q4, underscoring a period of intense capital deployment that significantly outpaces the historical 15% range observed in earlier periods, signaling a strategic pivot toward massive investment in AI-ready compute and network hardware.
This elevated capital intensity reflects a deliberate effort to secure a competitive advantage in generative AI, though it places immediate pressure on free cash flow. Analysts should evaluate whether these investments will yield sufficient incremental revenue to justify the current depreciation burden and the ongoing maintenance costs of such a vast asset base.
Data from recent SEC filings indicates that Alphabet consistently utilized over $15 billion per quarter for share repurchases throughout 2024 and 2025, demonstrating a commitment to returning capital to shareholders even as the company simultaneously ramps up its multi-billion dollar investments in AI-driven infrastructure.
The company's ability to sustain aggressive buybacks while funding record-level CapEx highlights the strength of its underlying cash-generating engine. However, investors should monitor if this dual-track strategy remains sustainable should the regulatory environment or competitive pressures necessitate even higher levels of R&D and infrastructure spending.
Quick answers to the most common questions about buying GOOGL stock.
Alphabet Inc. (GOOGL) generated $164.71B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alphabet Inc. (GOOGL) generated $73.27B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alphabet Inc. (GOOGL) spent $91.45B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Alphabet Inc. (GOOGL) returned $10.05B to shareholders via cash dividends and spent $45.71B on share repurchases. This shows the company's commitment to returning capital to its equity investors.