Alphabet Q2 Earnings Overview
Alphabet (NASDAQ: GOOGL) reported a strong second-quarter performance on Wednesday, with cloud revenue growing by 82% to $24.8 billion, contributing to an overall revenue increase of 24% to $119.8 billion, surpassing analysts’ expectations of $117 billion. Operating income reached $40.8 billion as operating margins expanded from 32% to 34%.
Despite these impressive figures, Alphabet experienced negative free cash flow for the first time as a publicly traded company, reporting $39.1 billion in operating cash flow against $44.9 billion in capital expenditures, resulting in a deficit of $5.8 billion. The company anticipates spending approximately $120 billion on capital expenditures in the second half of the year, raising concerns among investors amidst a broader market apprehensive about high capital expenditure in AI investments.
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