
Google parent Alphabet reported better-than-expected revenue for the second quarter on Wednesday, driven by growth of 82% in its cloud business. But the stock sank in extended trading as the company lifted its forecast for capital expenditures.
Here are the numbers.
Earnings per share : $2.85 adj. vs $2.89 expected by LSEG
: $2.85 adj. vs $2.89 expected by LSEG Revenue: $119.80 billion vs $116.93 billion expected by LSEG
Google now expects capex for the year of $195 billion to $205 billion, up from the $180 billion to $190 billion forecast provided last quarter. The company is pouring money into artificial intelligence infrastructure to keep pace with booming demand.
"We're still in a supply-constrained environment," finance chief Anat Ashkenazi told analysts on the company's earnings call. "I think we've said this now for multiple quarters in a row, and we are seeing very strong demand both from external cloud customers as well as across the business."
As AI competition heats up, Google said its Gemini App now has 950 million monthly active users and can process 22 billion tokens per minute.
Meanwhile, Google is seeing intensifying pressure from Chinese open-weight tools as businesses crack down on rising token costs. Google, which debuted three cheaper Gemini models this week, faced blowback earlier in the month after reportedly delaying the launch of its Gemini 3.5 Pro model
CEO Sundar Pichai said that model is undergoing testing, and the company is already investing compute into Gemini 4 to compete with frontier model makers like Anthropic and OpenAI.