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Alphabet’s advertising revenue meets estimates, raises 2026 capex guidance by $15 billion
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Google’s Q2 2026 advertising revenue rose 14.4% y/y to $81.63 billion, roughly in-line with analysts’ estimate of $81.12 billion while total revenue rose 24% y/y to $119.8 billion, above analysts’ estimate of $116.9 billion.
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Alphabet’s revenue beat was driven by cloud revenue which rose 82% y/y to $24.8 billlion, above analysts’ estimate of $22.4 billion.
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Capex was $44.9 billion, roughly in line with estimate of $44.8 billion.
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YouTube advertising revenue came in at $11.1 billion versus analysts estimate of $10.8 billion while revenue from Google Search was $63.27 billion versus estimate of $63.28 billion.
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Alphabet raised its 2026 capex guidance by $15 billion to $195-205 billion.
“We are updating our full year 2026 CapEx guidance range to $195 billion to $205 billion, up from our previous estimate of $180 billion to $190 billion. The increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand. As we previously shared, we continue to expect our CapEx to increase significantly in 2027 and we’ll provide more details at a later date,” CFO Anat Ashkenazi said in the earnings call.