Google just posted the biggest quarterly profit ever—$112 billion—and Wall Street is punishing it for doing so

Good morning. On Fortune’s radar today:

Google booked the biggest profit in history—and Wall Street hates it.

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GE was a mess. Larry Culp tells us how he fixed it.

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Google just booked the biggest profit quarter in history—and Wall Street hates it

Alphabet made history Wednesday with a quarterly profit that stretched into 12 figures for the first time in the search giant’s history—and perhaps for the first time in any company’s history, Fortune’s Eva Roytburg reports. Alphabet, the parent company of Google, grew its bottom line by 298% year-over-year in the second quarter, totaling an astounding $112.1 billion in net income. Alphabet’s Q2 revenue increased by a very impressive 24%, to $119.8 billion.

The stock declined 1.46% at the close yesterday and then sold off another 3.72% overnight. Why? Traders were surprised by CEO Sundar Pichai’s new guidance on future capex for 2026: $195 billion to $205 billion (it had previously been $180 billion to $190 billion). The company also did not describe in any detail how that spending generates revenues, particularly in relation to AI. “The 200 was the do-not-cross line,” Brian Mulberry of Zacks Investment Management told the WSJ. “You can’t be offloading this much cash and not talk about it.”

U.S. futures and European markets slide as oil hits $98 per barrel

S&P 500 futures were down 0.37% this morning. The index was down 0.14% yesterday. 

In Europe, the Stoxx 600 was down 0.66% in early trading; the U.K.’s FTSE 100 was down 0.18% before lunch.

Asia: South Korea’s KOSPI was up 4.40%. Japan’s Nikkei 225 was up 0.46%. India’s Nifty 50 was down 0.53%. China’s CSI 300 was up 0.23%. 

Brent crude was $98 per barrel this morning.

GE was a mess. Larry Culp fixed it. Here’s how.

When Larry Culp became the CEO of GE in 2018, the colossal conglomerate that Jack Welch built into the most valuable and admired enterprise in America teetered on the brink of collapse. The sprawling business model that competitors once envied had become a liability—unwieldy, capital-intensive, and increasingly unable to compete in focused, fast-moving markets. At the time, GE’s market cap measured just $96 billion, down over 80% from its peak in September 2000. Today, the valuations of the three enterprises total $689 billion. Culp........

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