Google just reported amazing earnings with a huge EPS beat EPS $9.11 vs. Est. $2.89 & Revenue $119.8B vs Est. $116.9B. But the EPS seemed to good to be true & because it is. The real EPS was : ~$2.85 vs Est. $2.90 (miss) let me explain. Google’s $9.11 reported EPS is heavily inflated by a large paper gain on its investments. Google reports a $98B unrealized gain on its $SPCX stake as of the end of Q2 & this is why Google isn't pumping 10% because they still have to wait end of the year to sell this stake. Googles Cloud backlog just hit $467.6B, up 406% from last year. In simple terms, customers have already committed to spending hundreds of billions with Google Cloud in the future. That is a big deal because it gives Google much better visibility into future growth. Cloud revenue also grew 63% and passed $20B in a quarter for the first time. Backlog is not revenue today, but it shows demand for Google’s AI and cloud services is still accelerating. Googles Capex continues to rise! $45B this quarter & $132B ytd up 100%. This is very Bullish for AI stocks & compute like $MU$NBIS$AMD$NVDA . Google is spending heavily because AI demand is growing faster than its available capacity. Management now expects $180B–$190B in 2026 CapEx, with spending increasing again in 2027. CEO Sundar Pichai Commentary: 🔸 “Our AI investments are redefining what’s possible across every part of our business.” 🔸 “Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions.” 🔸 “It’s great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it.” 🔸 “Gemini models now process 22 billion API tokens per minute and the Gemini App has 950 million monthly active users.” 🔸 “We are seeing strong demand for our security solutions, and our new Gemini 3.5 Flash Cyber delivers highly cost-efficient performance at the frontier.” 🔸 “These outstanding results show that our differentiated, full stack approach to AI is delivering real, measurable value for consumers, customers, and our partners globally.” Despite the small EPS miss the 467B backlog is the highlight most investors are ignoring. Can't belive the market is punishing Google for its amazing SpaceX investment haha.
4,862 views
18 Comments
Join the conversation with 500,000+ other investors 💸
Create an account to get access to everything Blossom has to offer!
📊 Personalized algorithm based on your investing style, experience level and interests
📈 Powerful portfolio and dividend tracking tools
👀 See what top creators and others in the community are investing in
