$GOOGL dropped nearly 3% after hours, as markets worried that excessive spending might lead to an extended recovery cycle. For the first time in its 22-year history, Google posted negative free cash flow, as it made a bold bet on heavy investments to meet strong AI demand. ⭐ Sales of TPU systems have become the primary source of revenue for Google Cloud; full-year CapEx was raised from $180–190 billion to $195–205 billion. Google’s Q2 operational results exceeded expectations: total revenue increased 24% year-over-year, Google Cloud revenue surged 82%, and Search revenue rose 17%; backlog climbed to $514 billion. Q2 CapEx reached $45 billion, with 60% allocated to servers and 40% to data centers and networking equipment. Pre-adjusted EPS increased by $6.26 primarily due to gains from equity investments in Anthropic and SpaceX; adjusted EPS came in at $2.85, slightly below the market expectation of $2.89.