Alphabet Q2: Cloud Surges 82%, Revenue Beats at $119.8B — But Capex Hiked to $195-205B; Stock Sinks
- Alphabet reported Q2 revenue of $119.8B (vs. $116.93B est.), with Google Cloud jumping 82% to $24.8B and operating margin expanding to 34%; net income surged to $112.1B helped by a ~$99B unrealized gain on equity stakes (Anthropic, SpaceX).
- Company raised full-year capex guidance to $195B-$205B from prior $180B-$190B; CFO Anat Ashkenazi said demand still outstrips supply and Q2 capex of $44.9B was up 100% YoY, pushing free cash flow to negative $5.9B.
- Shares fell in extended trading as investors focused on the spending trajectory over the revenue beat; Cloud backlog reached $514B (Source: CNBC, blog.google).