Google Parent Alphabet Stock Drops 4% After Brief Post-Earnings Pop

Alphabet Inc. (NASDAQ: GOOG ) (NASDAQ: GOOGL ) shares are trading lower Thursday after the company reported second-quarter financial results on Wednesday after the market closed.

The company raised its fiscal-year 2026 CapEx guidance range.

Alphabet stock is showing notable weakness.

Why is GOOG stock falling? Alphabet Beats Revenue Estimates With $119.8B, EPS $9.11 Alphabet reported earnings per share of $9.11, which may not compare to estimates.

In addition, it reported revenue of $119.79 billion, beating the consensus estimate of $116.81 billion.

Total revenue grew 24% year-over-year, driven by strong performance across the business.

Google Search revenue came in at $63.27 billion, up from $54.19 billion a year earlier.

YouTube advertising revenue rose to $11.06 billion from $9.80 billion.

Google Cloud revenue jumped to $24.77 billion from $13.62 billion.

Total Google advertising revenue reached $81.63 billion, up from $71.34 billion.

Alphabet said Gemini models now process 22 billion API tokens per minute, and the Gemini app has reached 950 million monthly active users.

The company ended the quarter with approximately $242.47 billion in cash, cash equivalents, and marketable securities.

Alphabet Ups 2026 CapEx Forecast Alphabet raised its full-year 2026 capital expenditure guidance to a range of $195 billion to $205 billion, up from its prior forecast of $180 billion to $190 billion, as the company continues to scale data center and AI infrastructure capacity.

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