ChainThink reports that on July 23, according to market data, Alphabet's after-hours stock price fell to $327.40, a decline of 4.24%.
The company previously reported second-quarter 2026 results that exceeded expectations, with earnings per share of $9.11 and revenue of $11.98 billion, surpassing Wall Street’s estimates of $2.88 and $11.651 billion, respectively.
The stock price decline is primarily related to the upward revision of the full-year capital expenditure forecast.
Alphabet has raised its 2026 capital expenditure forecast from $18 billion to $19 billion to $19.5 billion to $20.5 billion, with management stating that the increase reflects plans to accelerate capacity delivery to meet demand.
The company expects approximately 60% of its expenses to go toward servers and 40% toward data center and networking equipment.
Alphabet stated that demand for AI infrastructure remains strong, but supply constraints continue to affect the speed of capacity delivery. Third-party capacity utilization in the third quarter may put some pressure on margins, and the Wiz integration will create short-term headwinds in 2026.