Google Stock Earnings Reports

Alphabet reported a strong Q2 2026: consolidated revenue grew 24% y/y to $119.8B, driven by AI-led momentum across Search, YouTube and Google Cloud. Search & other revenue increased 17% and YouTube ads grew 13%. Google Cloud delivered exceptional 82% revenue growth, with backlog rising to $514B and operating margin expanding to 35.6%; Gemini Enterprise adoption is broad (nearly 90% of the Fortune 100) and cloud paid token usage and large customer consumption are accelerating. Product highlights include new Gemini models (3.6 Flash, 3.5 Flashlight, 3.5 Flash Cyber), Omni video capabilities, the Gemini app (950M MAUs), and Antigravity agent platform adoption. TPU system sales began and are included in cloud backlog; Alphabet remains supply-constrained for AI compute and is using third-party capacity as a bridge. Costs and investments rose: R&D +32%, total OpEx +27%, CapEx was $44.9B in the quarter and full-year CapEx guidance was increased to $195–$205B to accelerate capacity buildout. Operating income rose 30% to $40.8B; operating margin was 34%. Cash & marketable securities totaled $242.5B; long-term debt ~$98B. The board declared a $0.22/share quarterly dividend. Management reiterated a long-term, full-stack AI strategy (models, chips, infrastructure, enterprise solutions) but warned near-term margin and free-cash-flow pressure due to heavy infrastructure investment and supply constraints. Key investor takeaways: strong top-line and cloud momentum driven by AI adoption, meaningful increase in capital spending to scale AI infrastructure (raising near-term cash burn and margin pressure), robust long-term opportunity but execution-dependent on expanding compute capacity and maintaining frontier model leadership.