Google parent Alpha released its second quarter earnings on Wednesday after the bell, beating expectations driven by an 82% growth in its cloud services.
Alphabet posted earnings per share of $2.85 adj. and revenue of $119.8 billion, with estimates of $2.89 earnings per share adj. and $116.93 billion.
Google is raising its capex for the year to between $195 billion and $205 billion from $180 billion and $190 billion. Analysts called for $186.4 billion.
Alphabet stock fell over 2% on this news.
Finance chief Anat Ashkenazi said in an earnings call, “We’re still in a supply-constrained environment,” continuing to tell analysts, “I think we’ve said this now for multiple quarters in a row, and we are seeing very strong demand both from external cloud customers as well as across the business.”
Alphabet said its Gemini App has 950 million active users and can process 22 billion tokens per minute.
However, the tech giant is continuing to face pressure from Chinese open-weight tools because businesses are looking to lower token costs.
Google debuted three cheaper Gemini models this week, but faced backlash after delaying its Gemini 3.5 Pro model. CEO Sundar Pichai said that model is undergoing testing, and the company is already investing compute into Gemini 4 to compete with frontier model makers like Anthropic and OpenAI.
