Woofun AI reports that Alphabet delivered second-quarter 2026 earnings per share of $9.11 and revenue of $11.98 billion, surpassing Wall Street estimates of $2.88 and $116.51 billion respectively. Despite the financial beat, after-hours trading saw the stock decline 4.24% to $327.4 as investors reacted to revised capital expenditure plans.

The company raised its full-year 2026 capital expenditure forecast to between $19.5 billion and $20.5 billion, up from the prior range of $18 billion to $19 billion. Management indicated that approximately 60% of this spending will target servers, with 40% allocated to data center and network equipment to address strong AI infrastructure demand. Supply constraints continue to hinder capacity delivery, and third-party capacity usage in the third quarter may exert pressure on profit margins.

Additionally, Wiz integration is expected to create short-term obstacles in 2026, while most TPU system sales revenue will be recognized in 2027.