Alphabet Says Google Cloud Revenue Now Primarily Comes from TPU System Sales, Raises 2026 Capex to $195-205 Billion
Alphabet said Google Cloud's revenue now primarily comes from selling tensor processing unit (TPU) systems, a new disclosure in the company's second-quarter earnings call that underscores the segment's heavy reliance on hardware sales to external cloud providers. The announcement followed results that showed cloud revenue surged to $24.77 billion, up 82% from a year ago, driven by strong demand for AI infrastructure.
The company raised its full-year 2026 capital spending forecast to $195-205 billion from a prior range of $180-190 billion, citing plans to expand AI server capacity. Management noted that the company expects margin pressure in the third quarter as it increases purchases of cloud capacity from third-party providers.
From the sources (21 posts)
@stocksavvyshay$GOOGL Q2 EARNINGS • Revenue $119.8B vs Est. $116.9B • EPS $9.11 vs. Est. $2.89 • Operating Income $40.8B vs Est. $40.4B • Cloud Revenue $24.8B vs Est. $22.4B • CapEx $44.9B vs Est. $44.2B
@bearlyaiGoogle Cloud is now a $80B run rate business, accounting for ~20% of Alphabet’s total sales (up from 5% of sales in 2020)
@trungtphanRT @bearlyai: Google Cloud is now a $80B run rate business, accounting for ~20% of Alphabet’s total sales (up from 5% of sales in 2020) htt…
@unusual_whalesBREAKING: Google, $GOOGL, earnings: - EPS: $9.1, est: $2.91 - Revenue: $119 billion, est: $116 billion
@wallstengineALPHABET $GOOGL Q2’26 EARNINGS HIGHLIGHTS 🔹 EPS ex disclosed equity-gain impact: ~$2.85 (Est. $2.90) 🔴 🔹 Revenue: $119.80B (Est. $117.02B) 🟢; +24% YoY 🔹 Revenue ex-TAC: $103.62B (Est. $101.07B) 🟢; +27% YoY 🔹 CapEx: $44.92B (Est. $44.1B) 🟡;
@zerohedge*ALPHABET 2Q GAIN ON EQUITY SECURITIES $99.03B
@negligible_cap*ALPHABET: GEMINI APP HAS 950M MAUS Woah
@sundarpichaiQ2 was an amazing quarter, with our AI investments redefining what’s possible across every part of our business. Alphabet revenue grew 24% YoY and Google Cloud accelerated to 82% growth. We saw exciting momentum across the board from Searc
@stockmktnewzGoogle $GOOGL spent $44.9 Billion on CAPEX last quarter above expectations of $44.2B
@firstsquawkALPHABET Q2 2026: REVENUE $119.80B (EST $117.02B); REVENUE EX-TAC $103.62B (EST $101.07B); OPERATING INCOME $40.77B (EST $40.55B); GOOGLE SERVICES $94.54B (EST $94.32B); GOOGLE CLOUD $24.77B (EST $22.46B); GOOGLE ADVERTISING $81.63B (EST $8
@gurgavinGOOGLE JUST REPORTED EARNINGS *2Q REV. $119.80B, EST. $117.02B ( BEAT ✅ ) *2Q GOOGLE AD REV. $81.63B, EST. $81.12B ( BEAT ✅ ) *2Q GOOGLE SERVICES REV. $94.54B, EST. $94.32B ( BEAT ✅ ) *2Q OPER INCOME $40.77B, EST. $40.55B ( BEAT ✅ ) $
@zerohedgeALPHABET 2Q REV. EX-TAC $103.62B, EST. $101.07B ALPHABET 2Q GOOGLE CLOUD REV. $24.77B, EST. $22.46B ALPHABET 2Q GOOGLE AD REV. $81.63B, EST. $81.12B ALPHABET 2Q GOOGLE SEARCH & OTHER REV. $63.27B, EST. $63.28B ALPHABET 2Q CAPEX $44.
@stockmktnewzGOOGLE $GOOGL JUST REPORTED EARNINGS EPS of $9.11 Revenue of $119.8B beating expectations of $113.6B
@financialjuice🔴$GOOGL Alphabet Q2 Earnings Revenue $119.80B, est. $117.02B Revenue ex-TAC $103.62B, est. $101.07B Operating Income $40.77B, est. $40.55B Google Services Revenue $94.54B, est. $94.32B Google Cloud Revenue $24.77B, est. $22.46B Google Adve
@tradfi*ALPHABET 2Q GOOGLE AD REV. $81.63B, EST. $81.12B *ALPHABET 2Q GOOGLE SERVICES REV. $94.54B, EST. $94.32B *ALPHABET 2Q OPER INCOME $40.77B, EST. $40.55B *ALPHABET 2Q REV. $119.80B, EST. $117.02B $GOOGL
@tradfi*ALPHABET 2Q CAPEX $44.92B, EST. $44.15B $GOOGL
@semianalysis_BREAKING: GOOGLE CLOUD GENERATES REVENUE PRIMARILY FROM THE SALE OF TPU SYSTEMS! $GOOG Google Cloud has shifted from being a cloud to a hardware vendor, and this quarter was the first time they said "primarily" with meaningful language cha
@photoncapAI investment in progress
@semianalysis_BREAKING: WE KNOW PRODUCTS IS A PART OF GOOGLE CLOUD AND NOT THE MAJORITY OF REVENUE TPUs got sold in the quarter, services margin is a bit weak, but very very strong print
@firstadopterGoogle raised 2026 capex outlook to $195-205 billion from prior $180-190 billion. Google expects margin pressure from greater use of third parties for cloud capacity (Q3)
@firstadopterGoogle CEO Sundar Pichai was asked about Gemini's frontier model progress problems and its lack of leadership in agentic coding, which was the key pillar of my “Google is Secular Short” call. I think it's fair to say Sundar ABSOLUTELY FLOP