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Alphabet Q2 Earnings: AI Capex Doubles, Cloud Revenue Surges

7/19/2026

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Summary

Story summary

Alphabet will report Q2 2026 earnings on July 22, focusing on AI capex and Google Cloud in the market.
Alphabet projects 2026 capex of $185 billion, almost twice 2025’s $91 billion.
Google Cloud posted $20 billion Q1 revenue, operating income up 203% and backlog $462 billion.
A Gemini 3.5 Pro delay knocked Alphabet’s stock down nearly 3% before earnings.

History

Historical Context

Google’s 2014 purchase of DeepMind for roughly $400 million followed earlier landmark deals—YouTube in 2006 and DoubleClick in 2007—that broadened its data and ad platforms. DeepMind’s 2020 AlphaFold breakthrough highlighted AI’s value, leading to Alphabet’s intensified AI spending and the 2023 merger of DeepMind with Google Brain, fueling today’s cloud-AI rivalry with Microsoft and Amazon.

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Story summary

Alphabet will report Q2 2026 earnings on July 22, focusing on AI capex and Google Cloud in the market.
Alphabet projects 2026 capex of $185 billion, almost twice 2025’s $91 billion.
Google Cloud posted $20 billion Q1 revenue, operating income up 203% and backlog $462 billion.
A Gemini 3.5 Pro delay knocked Alphabet’s stock down nearly 3% before earnings.

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