Alphabet reported second-quarter revenue of $119.796 billion, up 24% year over year, with adjusted core diluted earnings per share of $2.85, according to MoneyDJ (E1). That result outpaced Wall Street's forecasts: per an LSEG survey cited by MoneyDJ, analysts had projected revenue of $116.93 billion and EPS of $2.89 for the quarter (E3). Revenue therefore came in roughly $2.9 billion above the consensus estimate, even as EPS landed slightly below the $2.89 analyst projection.
Google Cloud, which includes AI services, posted revenue of $24.768 billion, a jump of 81.8% year over year — well ahead of the $22.4 billion analysts had expected, according to MoneyDJ (E4). Notably, that growth rate accelerated from the 63% year-over-year pace recorded in Q1, per the same report. Looking ahead, Alphabet disclosed that its Cloud Backlog — unfulfilled cloud contract orders — stood at $514 billion as of the end of Q2 (E6), pointing to a substantial pipeline of future cloud revenue.
Alphabet's Q2 capital expenditure came in at $44.9 billion, double the amount spent a year earlier — a 100% year-over-year increase that slightly exceeded the $44.8 billion analyst estimate from StreetAccount, according to MoneyDJ (E7). The company also raised its full-year 2026 capex guidance from a prior range of $180-190 billion to a new range of $195-205 billion (E9). CFO Anat Ashkenazi went further, telling investors that 2027 capital expenditure would be "significantly higher" than 2026 (E11). Ashkenazi framed the spending around persistent demand pressure, stating: "We remain in a supply-constrained environment. I think we've said that for several consecutive quarters now — demand from external cloud customers, as well as from our own internal business units, remains very strong" (E12).
| Metric | Q2 Actual | Analyst Estimate | Prior Period Comparison |
|---|---|---|---|
| Total Revenue | $119.796B (+24% YoY) | $116.93B | — |
| Adjusted EPS | $2.85 | $2.89 | — |
| Google Cloud Revenue | $24.768B (+81.8% YoY) | $22.4B | Q1 growth was 63% YoY |
| Cloud Backlog | $514B | — | — |
| Capex (Q2) | $44.9B (+100% YoY) | $44.8B | — |
| 2026 Capex Guidance | $195-205B | — | Previously $180-190B |
| YouTube Ad Revenue | $11.055B (+13% YoY) | $10.81B | — |
Alphabet disclosed that the Gemini App now has 950 million monthly active users, and processes 22 billion tokens per minute, up from 16 billion tokens per minute in Q1, according to MoneyDJ (E14) and corroborated by TechNews (E15). The jump in tokens processed per minute — roughly a 38% increase from the prior quarter — signals a marked rise in usage intensity even as the user base itself continues to expand.
CEO Sundar Pichai struck a notably candid tone regarding the company's AI shortcomings. "Many of our features remain at the cutting edge of the technology; but there are also areas where we candidly acknowledge we still need continuous improvement — coding and agentic coding capability is one of them," Pichai said, as quoted by MoneyDJ (E16) and TechNews (E17). The admission stands out given the otherwise strong headline growth numbers reported elsewhere in the earnings release.
CFO Anat Ashkenazi said Google recognized direct sales revenue from its Tensor Processing Units (TPUs) for the first time in Q2, according to MoneyDJ (E13). She added, however, that most of the revenue tied to related enterprise partnership agreements will not be recognized until next year, meaning the current quarter's TPU revenue contribution represents only an early fraction of the eventual total.
YouTube advertising revenue rose 13% year over year to $11.055 billion, beating the $10.81 billion analyst estimate compiled by StreetAccount, according to MoneyDJ (E20).
Despite the revenue and cloud beats, Alphabet Class A shares closed down 1.46% at $342.09 on July 22, and extended losses in after-hours trading, falling a further 3.16% to $331.27 as of the report's cutoff, according to MoneyDJ (E18) and TechNews (E19).
The after-hours share decline sits in tension with several beat-and-raise figures in the same earnings release: Q2 revenue exceeded the $116.93 billion estimate (E1, E3), Google Cloud revenue of $24.768 billion topped the $22.4 billion estimate and accelerated from 63% to 81.8% growth (E4), and YouTube ads beat forecasts as well (E20). Yet the market's negative reaction coincided with two disclosures that raise the cost and uncertainty of Alphabet's AI buildout: capex guidance was pushed up to $195-205 billion for 2026 with 2027 expected to be even higher (E9, E11), and CFO Ashkenazi described an ongoing "supply-constrained environment" (E12) — language that implies continued heavy spending is required just to keep pace with demand. Layered on top of that, CEO Pichai's own acknowledgment that coding and agentic coding capabilities still need improvement (E16) came even as Gemini's usage metrics — 950 million monthly users and 22 billion tokens per minute (E14, E15) — showed rapid scale. Taken together, the evidence points to a company reporting strong current performance while committing to sharply higher future spending, against a background of self-acknowledged capability gaps in a competitively important area.
Alphabet's Q2 revenue rose 24% year over year to $119.796 billion, beating the $116.93 billion analyst estimate from an LSEG survey, according to MoneyDJ.
Google Cloud revenue jumped 81.8% year over year to $24.768 billion, up from 63% growth in Q1, and above the $22.4 billion analyst estimate, per MoneyDJ.
Alphabet raised its full-year 2026 capital expenditure guidance to $195-205 billion, up from a prior range of $180-190 billion, according to MoneyDJ and TechNews.
Pichai acknowledged that coding and agentic coding remain areas requiring continuous improvement, even as other features stay at the technological cutting edge, per MoneyDJ and TechNews.
Alphabet Class A shares closed down 1.46% at $342.09 on July 22 and fell a further 3.16% to $331.27 in after-hours trading, according to MoneyDJ and TechNews.
According to CNYES, Alphabet's Q2 revenue rose 24% and Cloud grew 82%, but 2026 capex guidance of $195B-$205B, per MoneyDJ, sent shares lower.
According to Inside.com.tw, Tesla's Q2 2026 revenue hit a record $28.24 billion (up 26%), but net income fell 5% to $1.11 billion and free cash flow turned negative $1.09 billion as capital spending jumped 142% to $5.79 billion, funding robotaxi and FSD expansion.
According to a report by CNA (Central News Agency), Taiwan-listed Kingpak Technology (光鼎電子) has launched its ThermaFlat™ SiC MOSFET series, claiming its 650V, 21mΩ device shows only about 8% resistance variation between -25°C and +125°C. Inside.com further reported that the new ThermaFlat™ II series adds a High VGS(th) gate design for improved noise immunity.