Overview
- Alphabet reported $119.8 billion in Q2 revenue and said Google Cloud revenue jumped about 82% to $24.8 billion, a result management tied to strong enterprise AI demand.
- The company raised full‑year capital expenditure guidance to $195–$205 billion, saying it is accelerating data‑center and AI server builds to meet demand.
- Heavy spending pushed free cash flow negative for the first time at roughly $5.9 billion for the quarter, driven largely by $44.9 billion of property and equipment outlays.
- Executives disclosed Gemini now has about 950 million monthly active users, confirmed the delayed Gemini 3.5 Pro is still in testing, and said the firm has begun recognizing revenue from direct TPU chip sales.
- Shares fell roughly 3–5% in extended trading as analysts pressed management on model timelines, return on massive AI investments, and how equity valuation gains from stakes in companies like Anthropic and SpaceX differ from cash generation.