Alphabet reported Q2 total revenue of $119.8 billion, a 24% increase year over year, with Google Cloud as the standout at $24.8 billion, up 82% from the same quarter last year. The company beat earnings expectations across the board. Capital expenditure came in below analyst estimates, which surprised markets that had been bracing for heavy AI infrastructure spending.
An 82% growth rate in cloud at this scale signals that Alphabet is capturing enterprise AI workloads at a faster pace than most expected. Lower-than-expected capex means more free cash flow in the near term, which supports the stock price and reduces dilution risk for shareholders. This result puts pressure on Microsoft and Amazon to match the narrative heading into their own cloud updates.
Microsoft Azure growth figures from next earnings cycle. Amazon AWS Q2 results. Alphabet Q3 earnings, approximately late October.
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