Alphabet earnings updates: Stock sinks during analyst call as company hikes 2026 capex - CNBC

Alphabet reported second-quarter revenue of $119.80 billion, exceeding the $116.93 billion analysts expected, though adjusted earnings per share of $2.85 fell just short of the $2.89 forecast.
Google's cloud business was a standout, with revenue surging 82% year-over-year to $24.8 billion, while search revenue rose 17%, in line with expectations.
Despite the revenue beat, the stock dropped in extended trading after Alphabet raised its 2026 capital expenditure forecast to between $195 billion and $205 billion, up from the prior range of $180 billion to $190 billion.
Finance chief Anat Ashkenazi told analysts the company remains in a "supply-constrained environment," citing strong demand from external cloud customers and internal operations amid heavy investment in AI infrastructure; Q2 capex doubled year-over-year to $44.9 billion.
Google's Gemini App has reached 950 million monthly active users processing 22 billion tokens per minute, while its Antigravity AI coding tool has 2.4 million weekly active users, though the company faces growing competition from Chinese open-weight models and cost-conscious businesses.
CEO Sundar Pichai said the delayed Gemini 3.5 Pro model is in testing and that the company is already investing in Gemini 4 to rival Anthropic and OpenAI; separately, "other income" including stakes in Anthropic and SpaceX added $99 billion.