# GOOGLEarningsBeatButStockDrops3%

Google parent Alphabet posted impressive Q2 results: revenue hit $119.8 billion, up 24% YoY, with cloud revenue surging 82% to $24.8 billion — the fastest growth on record. Yet the stock still fell over 3% after hours, driven by AI spending once again exceeding expectations. The company raised its full-year capex guidance to $195-205 billion, an increase of $15 billion from previous guidance. More notably, Q2 free cash flow turned negative at -$5.9 billion — the company's first ever quarterly negative FCF. Cloud backlog exceeded $500 billion, but market concerns over the payback period for AI investment outweighed the strong headline numbers.