Google Reports Earnings Today As AI Spending Tests Investors

Alphabet is set to report its second quarter earnings today after the market closes. Wall Street expects double digit growth with consensus estimates pointing to revenue of roughly 116.8 billion dollars and earnings of about 2.89 dollars per share. Alphabet has a strong track record of beating estimates, which raises the bar for today's report.

The real story for investors is artificial intelligence spending. Alphabet has guided for up to 190 billion dollars in capital spending for 2026 to build data centers and chips. This heavy spending has tested investor patience, especially since the company recently raised fresh equity to help fund the buildout. Google Cloud growth and its massive order backlog will be critical metrics to watch.

Search advertising remains the largest part of the business, and traders want reassurance that new artificial intelligence search features are not hurting traditional ad revenue. Management comments on capital expenditure, cloud backlog conversion, and custom AI chips on today's call will likely drive the stock more than the headline numbers.