Alphabet reported second-quarter 2026 revenue of approximately $119.8 billion, a 24% increase from a year earlier that exceeded analyst expectations [1, 2, 3]. Net income attributable to common shareholders rose sharply to about $112 billion, mainly driven by a $98-$99 billion unrealized gain on equity securities [4, 2, 3]. Diluted earnings per share came in at $9.11, far surpassing estimates near $2.90 [4, 3].
Operating income grew about 30% year-on-year to roughly $40.8 billion, pushing the operating margin to 34% [3]. Google Cloud revenue surged 80-82% to approximately $24.8 billion, fueled by strong demand for AI infrastructure and enterprise products [1, 2, 3]. Operating income for Google Cloud more than tripled to $8.8 billion from $2.8 billion in Q2 2025 [3].
Capital expenditures nearly doubled to about $44.9 billion, mostly invested in AI-related infrastructure [1, 2, 3]. Alphabet CEO Sundar Pichai attributed the results to growth in AI models such as Gemini, increased AI search queries, and boosted YouTube engagement during the 2026 FIFA World Cup. He said, "Our AI investments are redefining what’s possible across every part of our business" [2].
The Gemini AI app reached 950 million monthly active users, nearing OpenAI’s ChatGPT scale of 1 billion users [2, 3]. Nearly 90% of Fortune 100 companies now use Gemini Enterprise, Pichai added [3]. Google Services, including search, YouTube, subscriptions, and devices, rose 15% to about $94.5 billion [1, 3]. Google Search and other advertising revenue grew 17% to $63.3 billion, while YouTube advertising climbed 13% to nearly $11.1 billion [3].
Alphabet reported these results on July 22 and provided further details on Google Cloud growth and AI impacts the following day [4, 1, 2, 3]. The company has thus far demonstrated strong momentum in cloud computing and AI-driven offerings, backed by sizable capital investments in infrastructure.
Alphabet’s next financial update is expected with the Q3 2026 earnings release later this year.
