The Transcript

We write a weekly newsletter of quality quotes from Earnings Calls | Editor: @Skrisiloff | Lead Author: @ekmokaya | Publisher: @Avondaleam |

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Earnings next week include Alphabet, Tesla, Intel, IBM, Texas Instruments, ServiceNow, AT&T, Verizon, American Express, General Motors, 3M, Halliburton, SLB, Lockheed Martin, Blackstone, Charles Schwab and American Airlines.

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Alphabet CFO raises capex guidance again!

"Moving to investments, we are updating our full-year 2026 CapEx guidance range to $195 to $205 billion, up from our previous estimate of $180 to $190 billion. The increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand. As we previously shared, we continue to expect our CapEx to increase significantly in 2027 and will provide more details at a later date."

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Alphabet Capex Vs Depreciation Expenses

"...the significant increase in our investments in technical infrastructure will continue to put pressure on the P&L in the form of higher depreciation expense and related data center operations costs such as energy."

$GOOG $GOOGL

[Bluechip @blue_chip1]

Serious question:

After spending close to $100B in CapEx in the past year (excluding the $45B this quarter):

How is it possible the Depreciation charges for $GOOG are only $7.1B; literally UP only $1B since CYQ4.

Can anyone make sense of that???

[Sundar Pichai @sundarpichai]

Q2 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 Search to YouTube to the Gemini app (which reached 950M monthly active users). Our model APIs are processing 22B tokens/min (up from 16B+ last quarter) driven by our workhorse Flash models. We’re also seeing great adoption of Gemini Enterprise, used by 90% of the Fortune 100, as well as strong demand for our security solutions.

Outstanding results and momentum, and such an exciting moment—thanks to all of our partners and employees around the world! 🙌 About to hop on the call!

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Alphabet CFO: "CapEx was $44.9B in Q2 26, with the majority of the spend in technical infrastructure, to support our investments in AI. ~60% of our investment in technical infrastructure this quarter was in servers & 40% was in data centers & networking equipment"

$GOOGL

[Nebius @nebiusai]

This is our first full NVIDIA Vera Rubin NVL72 rack, photographed in our Finland data center.

The NVIDIA Spectrum-6 switches we took delivery of last week is the scale-out fabric NVIDIA built for Vera Rubin. Compute and network are now being brought up together, in the same data center, by the same teams.

The close co-engineering relationship we enjoy with NVIDIA means we work together from the earliest stage of every new platform, shortening the path from first rack to production workloads.

After bring-up and validation comes software polishing and production-grade testing, so when Vera Rubin reaches our customers, it delivers its full potential from day one.

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$NFLX Netflix CFO Spencer Neumann: Netflix remains materially underpenetrated across households, revenue pools, and global TV viewing

“We're entertaining an audience approaching 1 billion people with still lots of room to grow into our addressable market on every measure. We're under 45% penetrated into addressable households around the world. It's roughly 800 million addressable households. We're capturing, we think, just 7% of addressable revenue market. It's about $670 billion of addressable revenue in the countries and categories in which we operate today. And we estimate that we're only about 5% of TV view share globally.”

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$BLK CFO: "We repurchased $450 million worth of shares in the second quarter. At present, based on our capital spending plans for the year and subject to market and other conditions, we anticipate repurchasing at least $550 million of shares per quarter going forward, higher than our previous guidance communicated in January."

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Alphabet Free Cash Flows turn negative:

CFO: "We had negative free cash flow of $5.9B in Q2 26, driven by our investments in CapEx. Free cash flow was $53.3B for the TTM. We ended the quarter with $242.5B in cash & marketable securities..."

$GOOG $GOOGL

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It's Intel day

$INTC

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Earnings next week include Alphabet, Tesla, Intel, IBM, Texas Instruments, ServiceNow, AT&T, Verizon, American Express, General Motors, 3M, Halliburton, SLB, Lockheed Martin, Blackstone, Charles Schwab and American Airlines.

[TRADE|THE|TRADERS @ttt_financial]

🚨Aktien Earnings des Tages🚨

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Welche Aktien befinden sich auf eurer heutigen Watchlist #finx?

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@EdLudlow Could he tell us a bit more about this trend and if it has continued into july:

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More from the $IBM CEO: "In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases. This dynamic impacted client buying patterns."

[Unemployed Capital Allocator @atelicinvest]

How is this still going up mid teens?

I really would like to know.

[𝐏𝐢𝐧𝐞𝐜𝐨𝐧𝐞 𝐌𝐚𝐜𝐫𝐨 @pineconemacro]

Happened fast and more capex ahead than behind them

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$GOOGL Alphabet CFO and CFO say they remain supply-constrained despite rapidly expanding AI infrastructure:

CEO: “Demand for our models is translating to strong token usage across developers and enterprise customers, and we continue to be supply-constrained—a sign of momentum and rapid adoption."

CFO: "we're still in a supply-constrained environment. I think we’ve said this now for multiple quarters in a row, and we are seeing very strong demand both from external cloud customers, as well as across the busines"

[Sundar Pichai @sundarpichai]

The numbers are in: 1.7B+ global viewers tuned in to @YouTube to watch World Cup-related videos during the tournament. ⚽️ It was our most viewed World Cup ever on YouTube, bringing lifetime views of related content to over 200B!

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Google Cloud ARR:

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$GOOG $GOOGL

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Alphabet CFO declined to disclose TPU-specific profitability.

“We don't break out margins for any specific products or infrastructure components & certainly, there are benefits from designing and manufacturing our own chips.”
$GOOGL $GOOG

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$GOOGL Alphabet CFO expects CapEx to increase significantly again in 2027

"We continue to expect our CapEx to increase significantly in 2027 and will provide more details at a later date.”

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Alphabet CFO raises capex guidance again!

"Moving to investments, we are updating our full-year 2026 CapEx guidance range to $195 to $205 billion, up from our previous estimate of $180 to $190 billion. The increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand. As we previously shared, we continue to expect our CapEx to increase significantly in 2027 and will provide more details at a later date."

[The Transcript @TheTranscript_]

$GOOGL Alphabet CEO: Gemini API throughput was up 38% QoQ to 22B tokens per minute:

“Our model APIs are now processing approximately 22 billion tokens per minute. That's up from 16 billion just a quarter ago.”