Alphabet, GM Earnings Spotlight AI Spending Scrutiny

Investors are watching whether heavy spending on data centers and chips will translate into revenue growth as Alphabet prepares to report second-quarter results after the bell Wednesday. The outcome will test whether hyperscalers can convert infrastructure outlays into sustained profits amid signs that some investors have grown cautious about the pace of returns.

Alphabet is expected to post EPS of $2.95 on revenue of $116.98 billion, according to consensus estimates. Google Cloud revenue is projected at $22.4 billion, up 64 percent from a year earlier. Remaining performance obligations stand at an anticipated $488.1 billion. The company has faced reports of a delay to its Gemini 3.5 Pro model; a spokesperson said the firm is shipping models quickly while keeping them cost-effective and is testing upgraded versions with partners.

General Motors separately raised its full-year adjusted EBIT guidance to a range of $14 billion to $16 billion and adjusted EPS to $12 to $14 after beating second-quarter expectations. The automaker cited stable transaction prices averaging $52,000, lower warranty costs, and narrower electric-vehicle losses. It lowered its net-income guidance to between $8.4 billion and $9.8 billion. North American operations delivered an 8.6 percent adjusted EBIT margin, up 2.5 points from a year ago. Adjusted EPS reached $3.57 versus the $3.20 estimate; revenue was $48.03 billion.

Tesla results were also due in the same window, though coverage of its figures and any direct commentary on AI-related capital expenditure across the three companies remained limited. Demand for computing power continues to exceed supply at major providers, a point the companies themselves have repeated. Stock performance has diverged: Alphabet shares rose about 4 percent over three months while several peers were flat to lower.