Tesla and Alphabet Both Burn Cash in Q2 but With Starkly Different Margin Profiles

Earnings Impact 4
โดย 247wallst.com·Read original
Summary · why it matters

Tesla and Alphabet both reported negative free cash flow in the second quarter of 2026, yet their underlying financial health diverged sharply. Alphabet posted revenue of $119.796 billion, up 24.23%, with earnings per share of $9.11 against a $3.0427 estimate, and expanded its operating margin to 34% as Google Cloud grew 82% to $24.768 billion. Tesla's revenue came in at $28.236 billion, a 7.10% beat, but earnings per share of $0.33 missed by 38.51% and its operating margin collapsed to 1.4% amid a 47% jump in operating expenses. Alphabet doubled its long-term debt to $98.2 billion and suspended buybacks to fund AI cloud capacity, while Tesla is self-funding from $43.524 billion in cash. Key metrics to watch are Tesla's 1.48 million active Full Self-Driving subscriptions and Alphabet's cloud operating leverage as both companies bet heavily on artificial intelligence.

Impact on stocks 2

Artificial Intelligence▲ · 1 stocks
Alphabet Inc Class C
GOOG
▲ PositiveCapitalrelevance

Alphabet beat revenue and EPS estimates, expanded operating margin to 34%, and showed strong cloud growth.

Electrification & Mobility▼ · 1 stocks
Tesla Inc
TSLA
▼ NegativeCapitalrelevance

Tesla missed EPS estimates by 38.51% and operating margin collapsed to 1.4% due to a 47% jump in operating expenses.

Theme Impact 8

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