Alphabet July Earnings Reveal $119.8B Revenue, How Will Google Stock React?
Alphabet’s Q2 earnings revealed $119.8 billion in income on Wednesday, up 24% from a yr earlier and above Wall Street’s $116.5 billion estimate. Google Cloud led the beat, rising 82%.
The outcomes, posted after the closing bell, present AI demand lifting Google’s cloud enterprise as report spending and a delayed AI mannequin maintain buyers cautious.
Cloud Revenue Drives Alphabet’s Q2 Earnings
Google Cloud revenue jumped 82% to $24.8 billion, up from $13.6 billion a yr earlier. Analysts had forecast 64% development.
Cloud is Alphabet’s clearest tie to enterprise AI demand, and its development outpaced rivals Amazon and Microsoft. Demand for Alphabet’s custom AI chips helps.
Google Search income grew 17% to $63.3 billion, roughly in step with estimates, as AI Overviews drew extra advert {dollars}.
Where Alphabet’s AI Spending Is Going
Capital expenditures reached $44.9 billion within the quarter, double the year-ago determine and above estimates. Alphabet held its full-year capex guidance at $180 billion to $190 billion for 2026. Most of that funds information facilities and the customized chips that prepare and run AI fashions.
The scale retains widening. Alphabet closed a $29.5 billion buy of cloud safety agency Wiz this yr, and in June agreed to pay SpaceX about $920 million a month for AI compute. Finance chief Anat Ashkenazi has signaled 2027 spending will climb towards a roughly $257 billion consensus.
Investors wished proof the outlay converts to income. Cloud backlog, a measure of signed future enterprise, rose to $514 billion, and cloud gross sales grew 82%. Free money stream fell 47% from a yr earlier final quarter.
Reported revenue hit $112.11 billion, up 298%. Most got here from a roughly $99 billion achieve on fairness securities tied to Anthropic and SpaceX stakes, not operations.
Alphabet’s personal AI has stumbled too. It delayed the June launch of its Gemini 3.5 Pro model, whereas OpenAI and Anthropic saved transport enterprise upgrades.
How Will Google Stock React?
GOOG shares closed down 1.2% at $341.91 on Wednesday. In prolonged buying and selling the response was uneven, first dropping greater than 1% earlier than recovering to commerce barely greater, close to $344.
The inventory is up 11% in 2026 however has slid since April, a drop flagged in Google’s earnings preview and echoed throughout this week’s tech earnings.
“Our AI investments are redefining what’s potential throughout each a part of our enterprise,” Sundar Pichai, Alphabet’s chief govt, mentioned in a statement.
Microsoft and Amazon report subsequent week. With income accelerating however revenue flattered by paper positive aspects, the market’s verdict could hinge on 2027 spending indicators.
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