Alphabet Raises 2026 Full-Year Capex Guidance to $195-205B, Cloud Revenue Surges 82% in Q2

Alphabet reported Q2 2026 revenue of $119.8 billion on July 22, up 24% year-over-year and beating market expectations of $116.9 billion. Cloud division revenue jumped 82% to $24.8 billion, also exceeding analyst estimates of $22.3 billion, driven by strong demand for AI infrastructure and enterprise solutions.

Capital expenditure in Q2 doubled year-over-year to $44.9 billion. The company raised its full-year capex guidance from $180-190 billion to $195-205 billion, citing accelerating capacity expansion to meet surging AI demand. CFO Anat Ashkenazi stated the company remains supply-constrained across cloud and broader operations despite heavy infrastructure investment.