Alphabet Increases Capital Expenditure Forecast Amid Strong Cloud Growth
Alphabet reported a record growth in its cloud computing division for the quarter ended June, with revenue rising to $24.8 billion—well above analyst expectations. However, concerns emerged after the company announced an additional $15 billion increase in capital spending plans for 2026, now projecting between $195 billion and $205 billion. Despite strong overall quarterly results, including a total revenue of $119.8 billion that beat estimates, Alphabet's stock fell by about 3% in extended trading due to worries over negative free cash flow.
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Topics: AI development capital expenditures cloud computing growth financial results