Alphabet just dropped its Q2 earnings, and the numbers are a mixed bag. Revenue hit $119.8 billion — up 24% year over year. But here's the headline: Google Cloud revenues surged to $24.8 billion, an 82% jump that blew past analyst expectations of 64% growth. Google says AI infrastructure and enterprise AI services are the main drivers.
Cloud backlog now sits at $514 billion. And Gemini? The app has 950 million monthly active users, with daily active users tripling from a year ago. Google's model API is processing about 22 billion tokens per minute, up from 16 billion last quarter.
But all that growth comes with a price tag. Alphabet raised its 2026 capital expenditure forecast by another $15 billion, bringing it to between $195 billion and $205 billion. Investors didn't love that — the stock dropped over 3% in after-hours trading.