Alphabet Q2 2026 Cloud Revenue Up 82%, Capex Guidance Raised to $205 Billion, Stock Falls Over 7%
Alphabet reported a 82% year-on-year increase in cloud revenue for the second quarter of 2026, but raised its full-year capital expenditure guidance to $205 billion, a level some analysts project for 2050, and posted its first negative free cash flow since its 2004 IPO. The stock fell over 7% in a single day. The Magnificent Seven index dropped 4.8%. Apple, which avoided heavy AI spending, rose 15% in July. Microsoft fell 21% year to date, Meta 9.8%, while Apple gained 23% and the S&P 500 rose 8.3%.
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