ONE BIG THINGGoogle just booked the biggest profit quarter in history—and Wall Street hates it
Alphabet made history Wednesday with a quarterly profit that stretched into 12 figures for the first time in the search giant’s history—and perhaps for the first time in any company’s history, Fortune’s Eva Roytburg reports. Alphabet, the parent company of Google, grew its bottom line by 298% year-over-year in the second quarter, totaling an astounding $112.1 billion in net income. Alphabet’s Q2 revenue increased by a very impressive 24%, to $119.8 billion.
Investors hated it.
The stock declined 1.46% at the close yesterday and then sold off another 3.72% overnight. Why? Traders were surprised by CEO Sundar Pichai’s new guidance on future capex for 2026: $195 billion to $205 billion (it had previously been $180 billion to $190 billion). The company also did not describe in any detail how that spending generates revenues, particularly in relation to AI. “The 200 was the do-not-cross line,” Brian Mulberry of Zacks Investment Management told the WSJ. “You can’t be offloading this much cash and not talk about it.”
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