Alphabet reported revenue of $103.62 billion, missing estimates of $120.36 billion, while EPS surged to $9.11 versus the $2.98 consensus, driven by cost discipline and AI efficiency gains. Cloud revenue jumped 82% with a $514 billion backlog, yet investors questioned durability amid $45 billion in AI capex, potential margin pressure from GPU resales, and slower monetization as search and YouTube ad growth lagged at 17% and 13%. The stock fell over 6% post-earnings despite strong Gemini adoption metrics like 950 million monthly users, reflecting concerns that AI tools may be eroding high-value ad inventory without clear profit visibility.

Company: Alphabet Inc. (GOOGL) — Q2 FY2026

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