Alphabet Q2 Earnings 2026: Cloud +82%, Search +17%

Alphabet revenue rose 24% and operating income rose 30%

For the quarter ended June 30, 2026, Alphabet booked $119.796 billion in revenue, 24% more than a year before, and operating income climbed 30% to $40.770 billion. Even with currency effects stripped out, revenue grew 23%, which the release says makes this the 12th quarter in a row of double-digit growth. The same quarter a year earlier brought in $96.428 billion of revenue and $31.271 billion of operating income.

Alphabet owns Google, so its April–June results cover Search, YouTube, Cloud and the smaller Other Bets. The day-to-day business shows up in revenue and operating income, and both rose more than 20%.

Alphabet operating margin widened to 34% in Q2 2026

Costs rose more slowly than revenue, so the operating margin went up 2 points, from 32% to 34%. With revenue up 24% and operating income up 30%, Alphabet kept more of each sales dollar as profit. The dollar figures in this section come from the financial highlights table on page 1 of the release, which lists each one next to its prior-year number.

Alphabet net income rose 298%, mostly from unrealized gains

Most of the 298% jump in net income, to $112.107 billion for common stockholders, came from a $98.0 billion net gain in other income, not from running the business. Other income sits below operating income on the income statement, so it raises net income but leaves the 30% operating growth untouched. The release puts most of it down to net unrealized gains on equity securities that Alphabet holds.

A gain is unrealized when a holding has risen in market value but has not been sold. No cash comes in, and if those shares drop in a later quarter, the same line shows a loss. A year earlier, other income was $2.662 billion and net income $28.196 billion, so a $98.0 billion line is far outside the usual range.

Alphabet EPS rose 294% while operating income grew 30%

Diluted EPS went from $2.31 to $9.11, up 294%, because it includes the same equity gain as net income. For a read on the core business, the 30% rise in operating income is the better guide. The release places the other-income bullet directly above the net income and EPS bullet, and reading the two together shows that the 298% is not business momentum.

Google Search revenue grew 17% and Google Cloud revenue grew 82%

Search & other brought in $63.271 billion, up 17%, while Google Cloud jumped 82% to $24.768 billion. Cloud grew about five times as fast as Search and added more new revenue than any other line. The release calls the Cloud number a meaningful acceleration and credits Google Cloud Platform, where growth came from enterprise AI Solutions, enterprise AI Infrastructure and core GCP services.

Year-over-year revenue growth, four lines shown

Of the four lines shown, Google Cloud's +82% is roughly five times Search's +17%, and the other three shown fall between 13% and 17%. Google Network, which declined, is not in the chart.

+82%Google Cloud

+17%Google Search & other

+15%Subscriptions, platforms, devices

+13%YouTube ads

0255075%

A year earlier, Search stood at $54.190 billion and Cloud at $13.624 billion. Cloud's profit grew along with its sales, with segment operating income rising from $2.826 billion to $8.814 billion, though a single quarter is a short track record.

Alphabet revenue by segment puts Google Cloud growth far ahead

Of Alphabet's three segments, Google Services, Google Cloud and Other Bets, Google Cloud grew far faster than the others in the page-2 table. Google Services, the segment that holds Search, YouTube ads, Google Network and the subscriptions, platforms, and devices line, rose 15% to $94.540 billion. Other Bets took in $382 million, against $373 million a year before.

The three segments together come to a little less than total revenue. The difference is the hedging line, a $106 million gain this year against a $112 million loss a year ago, and adding it brings the total to $119.796 billion. The table also lists 198,933 employees, 11,830 more than the 187,103 a year earlier.

YouTube ad revenue rose 13% while Google Network revenue slipped

Google Network was the only advertising line to shrink, down from $7.354 billion to $7.303 billion, while YouTube ads rose 13% to $11.055 billion. YouTube ads had been $9.796 billion a year before, so the video platform added more than a billion dollars in quarterly ad sales. The subscriptions, platforms, and devices line, which is not advertising, grew 15% to $12.911 billion.

Alphabet's $49.6 billion equity raise helps fund its AI capex

Alphabet sold Class A stock, Class C stock and mandatory convertible preferred stock in June 2026 for $49.6 billion in net proceeds, and part of that money is earmarked for AI infrastructure. The release says the money is for general corporate purposes and names capital spending on AI infrastructure and global compute as one of them. With the $20.3 billion of senior unsecured notes issued in the same quarter, Alphabet raised roughly $70 billion in three months.

The same section of the release describes a separate At-the-Market Program for up to $40.0 billion of Class A and Class C shares. That money is mainly for taxes owed on employee equity grants, not for AI spending, and no shares had been sold through it as of June 30, 2026. The equity raise does add shares, so future earnings will be spread over a larger share count.

For the $20.3 billion in notes, the release gives only general corporate purposes. It does not tie the notes to AI infrastructure, so only the equity raise has a stated AI link.

Gemini hit 950 million monthly users as AI lifts Google Search

The Gemini App now has 950 million monthly active users, Pichai says, and he gives popular AI features the credit for growth in Search queries. He adds that Gemini models handle 22 billion API tokens a minute and that nearly 90% of the Fortune 100 use Gemini Enterprise. These numbers come from his statement in the earnings release, not from the financial tables.

Demand for security products is strong, he says, and the new Gemini 3.5 Flash Cyber delivers frontier-level performance at low cost. On YouTube, videos about the FIFA World Cup 2026 reached more than 1.7 billion unique viewers during the tournament.

The Gemini models behind these numbers are covered in Gemini 3.6 Flash Pricing, Benchmarks vs 3.5 Flash and Gemini 3.5 Pro is still not in the Gemini API. Both deal with the models, not the earnings.

Google Q2 earnings show no sign AI search is shrinking Services sales

With Search up 17% and Google Services up 15% in Q2, the results show no shrinking of search advertising. The worry that AI-generated answers will pull ad money away from Search has been around for a while, and this quarter's numbers do not support it. Pichai's explanation is that AI features increased the number of searches.

That holds for one quarter only. Settling whether AI replaces search or adds to it will take several quarters of data, and the release says nothing about what return the roughly $70 billion raised will earn. Nor do the figures speak to the share price, so they are not a basis for an investment decision.

Cloud at 82% and Search at 17% led Alphabet's Q2 growth, and operating income rose 30%. The 298% rise in net income is mostly an equity gain, so operating income is the figure to watch into the next quarter.