Alphabet lifts capex guide to $205bn as Google Cloud jumps 82%
Alphabet went into its second-quarter results on Wednesday carrying one question louder than the rest: whether the tens of billions it is funnelling into AI infrastructure has started to earn its keep. Judged by the after-hours share price, the answer was not yet.
The company reported revenue of $119.8bn for the three months to June, up 24% from $96.4bn a year earlier and comfortably ahead of forecasts.
Google Cloud did the heavy lifting, with revenue climbing 82% to $24.8bn, operating income more than tripling to $8.8bn, and its margin widening to about 36%. Group operating margin edged up to 34% from 32%.
That extends a streak that had Alphabet closing in on Nvidia as the world’s most valuable company, and it slots into a Big Tech capex cycle now running past $650bn a year. Cloud backlog, the contracted work Google has yet to book, rose to $514bn from $490bn.
Going...
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