Alphabet raised its full-year capex guidance to $195-$205 billion, overshadowing a 24% revenue jump to $119.8 billion.
Alphabet reported second-quarter revenue of $119.8 billion, up 24% year over year, and operating profit of $40.7 billion, a 34% increase. The results topped revenue expectations by $3 billion but missed adjusted earnings per share estimates by $0.04 at $2.85.
The company raised its full-year capital expenditure guidance to $195-$205 billion, up from $180-$190 billion, citing accelerated infrastructure spending to meet AI demand. The midpoint increase of $15 billion could surpass Amazon’s $200 billion 2026 capex target.
Shares fell 7.1% as investors focused on rising costs, despite strong earnings growth. The move reflects broader market concerns over hyperscalers’ aggressive AI infrastructure investments.