Alphabet Crushes Q2: $9.11 EPS, Cloud Up 82%
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- Alphabet reported Q2 adjusted EPS of $9.11, more than triple the $2.88 consensus estimate and up 294% year-over-year, lifted by $6.26 per share in fair-value gains on equity securities
- Alphabet's Q2 revenue of $199.8 billion dwarfed the $117.1 billion analyst estimate
- Google Cloud revenue jumped 82% year-over-year to $24.8 billion, well ahead of the 63% growth Wall Street had modeled
- Alphabet's capex rose 101% YoY to $44.9 billion for the quarter, keeping investors focused on the company's $180–$190 billion full-year 2026 capital-spending guidance
- Evercore ISI's Mark Mahaney floated the possibility that 2027 capex could reach "$300B? $350B?!" to meet surging AI infrastructure demand
- Alphabet shares were essentially flat in late trading despite the blowout results, sitting on 12% year-to-date and 82% one-year gains
Why it matters: Even a triple-beat quarter couldn't move the stock because the real story is Alphabet's $44.9B quarterly capex (up 101% YoY) and the prospect of $300–350B in 2027 spending — the figure that will set the bar for Meta, Microsoft, Amazon, and Apple, all of which report next week.
