Alphabet reported $119.8 billion in Q2 2026 revenue, up 24% year-over-year and above the roughly $117 billion consensus, marking a twelfth consecutive quarter of double-digit growth. Google Cloud revenue surged 82% to $24.8 billion, beating estimates near $22.5 billion, with Cloud operating income tripling to $8.8 billion from $2.8 billion a year ago. GAAP EPS came in at $9.11, dwarfing the roughly $2.89 consensus. None of that headline is what moved the stock. The GAAP beat was driven almost entirely by a $99 billion unrealized gain on Alphabet’s equity stakes in Anthropic and SpaceX; strip that out and adjusted EPS was $2.85, a miss against the $2.89 estimate. Shares fell as much as 5% in after-hours trading, not on the earnings number, but on management raising full-year 2026 capex guidance to $195-205 billion from $180-190 billion and flagging a further significant increase into 2027. The quarter beat on almost every reported line and the market sold it anyway.