Alphabet falls after Q2 revenue beat, raises 2026 capex outlook

According to CNBC, Alphabet shares fell in after-hours trading Wednesday after the Google parent reported second-quarter revenue of $119.8 billion, up 24% from a year earlier and above the $116.9 billion expected by LSEG. Earnings per share were $9.11, while operating income came in at $40.77 billion and operating margins widened 1.6 percentage points from a year ago. Alphabet raised its 2026 capital expenditure outlook to $195 billion to $205 billion from $180 billion to $190 billion, and executives said capex would increase significantly in 2027. CEO Sundar Pichai said AI Mode had surpassed 1 billion monthly active users since its global expansion last October, while CFO Anat Ashkenazi said Alphabet was not planning to return to equity markets except for its ATM sales tied to employee equity grant tax obligations.