Alphabet's Q2 operating EPS was $2.85 after stripping out $6.26 from paper gains on its Anthropic stake, despite a headline revenue beat. The company spent $44.9 billion in capital expenditures, exceeding its $24.8 billion cloud revenue for the quarter. Alphabet raised $49.6 billion in equity and $20.3 billion in bonds in Q2 to fund AI infrastructure, marking a shift from stock buybacks to issuance.
Alphabet's AI infrastructure buildout is now funded by external capital and debt, not operating cash flow, signaling unsustainable spending.