BlockBeats News, July 23rd, Alphabet announced better-than-expected performance in the second quarter of 2026, with earnings per share of $9.11 and revenue of $11.98 billion, surpassing Wall Street expectations of $2.88 and $116.51 billion, respectively, but investors expressed concerns over the company's significantly increased capital expenditure plans and recent margin pressure. According to BIT market data, Alphabet's stock price fell to $327.4 in after-hours trading, down 4.24%.

Market analysis believes that the reason for Alphabet's sharp decline after hours is that the company has raised its full-year 2026 capital expenditure forecast to $19.5 billion to $20.5 billion from the previous estimate of $18 billion to $19 billion. Management stated that this increase reflects a plan to accelerate capacity delivery to meet demand. Approximately 60% of the expenditure is expected to be used for servers, and 40% for data centers and network equipment.

The company stated that demand for AI infrastructure remains strong, but supply constraints continue to hinder capacity delivery speed. Management also mentioned that third-quarter utilization of third-party capacity may exert some margin pressure, and the integration of Wiz will also pose short-term resistance in 2026. Looking ahead, Alphabet expects strong demand to continue for search, YouTube, and cloud services, with AI capabilities driving more usage and improving monetization. The company also stated that a significant portion of revenue from TPU system sales is expected to be recognized in 2027 instead of 2026.