Google Cloud recorded its best quarterly growth to date, with revenue surging 82% to $24.8bn. Across parent company Alphabet, revenue climbed 24% to $119.8bn, with income up 30%. Despite these gains, share prices fell 3% after Google revealed a big boost in capital expenditure and defended delays to its top-end AI model. CEO Sundar Pichai stated, "Q2 was an amazing quarter," driven by demand for AI infrastructure and AI solutions, noting that nearly 90% of the Fortune 100 uses Gemini Enterprise. Google admitted it will increase capital expenditure this year, focused on AI infrastructure. Last quarter, capex was bumped up by $5bn to $180bn to $190bn, and it has now been increased to $195bn to $205bn. Over the second quarter alone, Google recorded capex of $45bn. CFO Anat Ashkenazi said spending would "increase significantly" in 2027. Google’s flagship AI model was once again delayed this week, with the company unveiling Gemini 3.6 Flash and a cyber-focused model, Gemini 3.5 Flash Cyber.