Alphabet's Google Cloud revenue surges 82% year over year to $24.8 billion

Earnings Impact 4
โดย The Motley Fool·US·Read original
Summary · why it matters

Alphabet's Google Cloud revenue surged 82% year over year to $24.8 billion in the second quarter, with operating income more than tripling to $8.8 billion and segment margin expanding from 20.6% to 35.5%. The company raised its 2026 capital expenditure guidance to a range of $195 billion to $205 billion, up from a prior range of $180 billion to $190 billion, as demand for AI infrastructure continues to outstrip available supply. Google Cloud ended the quarter with a $514 billion backlog, over half of which is expected to be recognized as revenue within two years, and for the first time recognized revenue from its custom Tensor Processing Units. Alphabet's overall operating income rose 30% to $40.8 billion, and it generated $39.1 billion in quarterly operating cash flow, providing ample capacity to self-fund its AI build-out despite free cash flow turning negative to $5.9 billion.

Impact on stocks 4

Artificial Intelligence▲ · 4 stocks
Alphabet Inc Class C
GOOG
▲ PositiveCapitalrelevance

Google Cloud revenue and operating income surged, with raised capex guidance reflecting strong AI demand.

NVIDIA Corporation
NVDA
▲ PositiveDemandrelevance

Alphabet's increased AI capex and demand for AI infrastructure likely boosts demand for NVIDIA's chips.

Theme Impact 8

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