Overview
- Alphabet reported Q2 revenue of $119.8 billion on Wednesday, driven by Google Cloud’s 82% year‑over‑year rise to about $24.8 billion and rapid Gemini adoption.
- The company raised its 2026 capital spending plan to $195–$205 billion after Q2 capex roughly doubled to $44.9 billion, and free cash flow went negative by about $5.9 billion.
- Tesla posted roughly $28.24 billion in Q2 revenue with record deliveries but missed profit estimates with adjusted EPS near $0.33, while capex jumped 142% to about $5.79 billion and free cash flow turned negative.
- Investors reacted cautiously as Alphabet’s net income was materially lifted by roughly $99 billion in equity gains from investments such as SpaceX and Anthropic, highlighting the difference between paper gains and operating cash.
- The results underline a broader industry split where hyperscalers shoulder massive, multi‑year infrastructure spending while suppliers like Texas Instruments and GE Vernova begin to show clearer cash conversion and large backlogs; markets will watch cloud backlog conversion, capex pacing and early revenue from robotaxi and Optimus projects for signs of durable profit.