Alphabet posts record $112 billion profit, but investors react negatively

Alphabet announced its second-quarter earnings, delivering a net income of $112.1 billion—the largest quarterly profit ever recorded by any company. Revenue rose 24% to $119.8 billion, and the profit jump represented a 298% increase from the prior year. Despite the strong financials, the stock slipped 1.46% at the close and dropped an additional 3.72% in after-hours trading.

The decline was driven by CEO Sundar Pichai’s new 2026 capital-expenditure outlook of $195 billion to $205 billion, up from the previous $180 billion to $190 billion range, and the absence of a clear plan linking the spending to future revenue, particularly in artificial intelligence. Brian Mulberry of Zacks Investment Management warned that such a large cash outlay without explanation raises concerns among investors.