Alphabet raises 2026 capex guidance to $195-205B; Google Cloud revenue surges 82% YoY; neocloud stocks rally premarket.

Alphabet has raised its annual capital expenditure forecast by $15 billion, now projecting spending between $195 billion and $205 billion. This marks an increase from the company’s previous quarterly guidance of $180 billion to $190 billion. For context, Alphabet’s capex reached $91.45 billion last year, up from $52.5 billion the prior year.

“We have increased our capacity quite significantly over the past three years. The demand still outpaces that investment,” CFO Anat Ashkenazi said during an earnings call.

The company reported second-quarter 2026 earnings of $119.8 billion, a 24 percent increase over the prior quarter. Google Cloud posted $24.8 billion in revenue, setting a new divisional record and marking an 82 percent year-over-year growth. Alphabet also announced that it has begun recognizing revenue from standalone sales of its AI chip family, the TPU.

Despite the strong financial results, Alphabet shares fell 3 percent in after-hours trading. The decline reflects investor concerns over the escalating costs associated with developing AI data centers.