# Alphabet (GOOGL) Q2 2026 earnings

Results filed 2026-07-22 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/googl/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1652044/000165204426000066/0001652044-26-000066-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Alphabet's second quarter 2026 revenues increased 24% to $119.8 billion, Google Cloud revenues increased 82% to $24.8 billion, and diluted EPS was $9.11.

Alphabet's revenue rose 24% to $119.8 billion, its 12th consecutive quarter of double-digit growth. Google Cloud was the standout: revenue grew 82% to $24.8 billion and its operating income rose to $8,814 million from $2,826 million. Google Services grew 15% to $94.5 billion, led by Search & other, up 17%. Operating margin reached 34%. Net income was lifted by a $98.0 billion other-income gain, mostly unrealized gains on equity securities, so EPS of $9.11 overstates underlying earnings.
The release gave no numerical guidance for future periods. The visible tension is spending: purchases of property and equipment were $44,924 million, more than operating cash flow of $39,069 million, so free cash flow was negative at $(5,855) million. Alphabet funded this with a $49.6 billion equity raise and $20.3 billion of senior notes, and long-term debt rose to $98,165 million. Its main bet is that AI demand keeps Cloud and Search growing fast enough to justify the investment.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenues | $119.8 billion | up 24% from a year ago (23% in constant currency) | GAAP |
| Operating income | $40,770 | up 30% from a year ago | GAAP |
| Operating margin | 34% | up 2 percentage points from a year ago | GAAP |
| Net income available to common stockholders | $112,107 | up 298% from a year ago | GAAP |
| Diluted net income per common share | $9.11 | up 294% from a year ago | GAAP |
| Net cash provided by operating activities | $39,069 |  | GAAP |
| Free cash flow | $(5,855) |  | non-GAAP |
| Purchases of property and equipment (capital expenditures) | (44,924) |  | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Google Cloud revenues | $24.8 billion | up 82% |
| Google Services revenues | $94.5 billion | up 15% |
| Google Search & other revenues | $63,271 | up 17% |
| YouTube ads revenues | $11,055 | up 13% |
| Google Cloud operating income | $8,814 |  |
| Gemini App monthly active users | 950 million |  |

## Key takeaways

1. **Google Cloud revenue growth accelerated to 82%** Google Cloud revenues increased 82% to $24.8 billion, and its operating income rose to $8,814 million from $2,826 million a year earlier.
2. **Search still growing double digits** Google Search & other grew 17% to $63,271 million, and Google Services revenues increased 15% to $94.5 billion.
3. **Net income inflated by equity gains** Other income was a net gain of $98.0 billion, mostly unrealized gains on equity securities. The gain on equity securities of $99.0 billion added $6.26 to diluted EPS of $9.11.
4. **Capex outran operating cash flow** Purchases of property and equipment were $44,924 million against operating cash flow of $39,069 million, leaving free cash flow of $(5,855) million for the quarter.
5. **Alphabet raised heavy outside capital** In June 2026 it raised $49.6 billion of net proceeds from stock and mandatory convertible preferred, plus $20.3 billion from senior unsecured notes. Long-term debt was $98,165 million at June 30, 2026.

## Questions

**What were Alphabet's Q2 2026 revenue and EPS?** Revenues were $119.8 billion, up 24% (23% in constant currency), and diluted EPS was $9.11, up 294% from a year ago. The EPS figure includes a large gain on equity securities.
**How did Google Cloud perform in Q2 2026?** Google Cloud revenues rose 82% to $24.8 billion, and operating income was $8,814 million versus $2,826 million a year ago. Growth came from enterprise AI Solutions, enterprise AI Infrastructure and core GCP services.
**Why was net income so high compared with operating income?** Other income was a net gain of $98.0 billion, mainly net unrealized gains on equity securities. The equity gain added $77.1 billion to net income and $6.26 to diluted EPS.
**Did Alphabet generate free cash flow in Q2 2026?** No. Free cash flow was $(5,855) million, because purchases of property and equipment of $44,924 million exceeded operating cash flow of $39,069 million. Trailing twelve-month free cash flow was still $53,273 million.
**Did Alphabet give financial guidance for next quarter or the year?** The earnings release contains no numerical guidance, and no call transcript was provided. It says the June 2026 equity raise will fund capital expenditures to scale AI infrastructure and global compute.

## Slides and investor documents

- [Earnings Slides](https://s206.q4cdn.com/479360582/files/doc_financials/2026/q2/2026q2-alphabet-earnings-slides.pdf) (Slide deck)
- [Webcast & Transcript](https://abc.xyz/investor/events/event-details/2026/2026-Q2-Earnings-Call-2026-GgTAq7Is0z/default.aspx) (Company's official transcript)
- [Document](https://s206.q4cdn.com/479360582/files/doc_financials/2026/q2/GOOG-10-Q-Q2-2026.pdf) (Document)
- [HTML](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000071/goog-20260630.htm) (Document)