Cloud, AI & Capex: 5 big takeaways from Alphabet's Q2 earnings

Alphabet reported Q2 revenue of $119.8 billion, up 24% year-on-year and beating estimates of around $116.9 billion, with Google Cloud surging 82% to $24.8 billion on strong enterprise AI demand. The company raised its 2026 capex guidance to $195-205 billion, an increase of $15 billion from its earlier forecast, to fund AI infrastructure including data centres and advanced chips. Despite the revenue beat, adjusted EPS slightly missed expectations and Alphabet posted its first-ever negative free cash flow, while shares slipped in after-hours trade as investors weighed the heavy AI spending.