Alphabet Beats Q2 Earnings, Raises Capex to $85B Amid Antitrust Risks

Alphabet, Google's parent company, reported strong second-quarter earnings, beating Wall Street expectations with adjusted earnings per share of $2.31 and revenue excluding traffic acquisition costs of $81.2 billion. The company's advertising and cloud businesses, particularly Google Cloud Platform with $13.6 billion in revenue, were key growth drivers, supported by AI innovations such as AI Overviews and AI Mode, which are positively impacting user engagement and revenue. CEO Sundar Pichai highlighted AI's role in driving momentum across the business and announced an increase in capital expenditures to $85 billion in 2025, up from the previous $75 billion projection, reflecting significant investment in AI capabilities and data centers. Despite the strong financial results, Alphabet's stock declined over 2% following the earnings release, amid concerns over a looming antitrust ruling by a U.S. judge that could impose restrictions on Google's search exclusivity deals, including those with Apple. Analysts remain mostly bullish on Alphabet's growth prospects, particularly its cloud and AI infrastructure, though the stock has underperformed other Big Tech peers this year. Overall, Alphabet continues to leverage AI and cloud technology to expand its revenue base while navigating regulatory and market challenges.