Mixed earnings kick off Big Tech reporting season: Alphabet shines, Tesla stumbles

The first Q2 results from the U.S. “Magnificent Seven” highlight diverging fortunes among tech giants. Alphabet posted record results, riding the wave of AI and cloud computing, while Tesla struggled amid fierce competition and softer demand.

Google’s parent company reported Q2 net income of $28.2 billion, or $2.31 per share, up sharply from $23.6 billion ($1.89 per share) a year ago and above consensus forecasts of $2.17. Revenue rose 14% to $96.4 billion, topping expectations of $94 billion, fueled by strength in cloud services and AI. Advertising revenue grew just over 10% to $71.3 billion, while YouTube revenue jumped 13% to $9.8 billion, beating forecasts of $9.6 billion.

Buoyed by AI momentum, Alphabet raised its capex plan by $10 billion to $85 billion. “AI is positively impacting every part of our business,” said CEO Sundar Pichai.

In contrast, Tesla reported Q2 net income of $1.2 billion, down 16% year-on-year. Adjusted EPS came in at $0.40, missing the $0.43 consensus. Total revenue slipped to $22.5 billion versus $22.7 billion expected, with automotive sales plunging 16% to $16.7 billion. The EV maker had already flagged a 14% drop in deliveries earlier this month.

Tesla continues to face intensified competition from Chinese automakers and the fallout from CEO Elon Musk’s political forays and tensions with President Trump.