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Alphabet Q2 revenue $119.8B beats estimates, Gemini reaches 950M monthly users
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Alphabet reported its 12th consecutive quarter of double-digit revenue growth, posting Q2 2026 revenue of $119.8 billion (up 24% year-over-year), beating Wall Street estimates of $117 billion. Earnings per share surged 295% to $9.11, far exceeding consensus estimates of $2.88. Google Cloud revenue jumped 82% to $24.8 billion, driven by AI product demand, with operating income tripling to $8.8 billion. CEO Sundar Pichai announced Gemini now has 950 million monthly active users, up from 750 million in Q4 2025. Capital expenditures doubled to $44.9 billion as Alphabet invests heavily in AI infrastructure. Other income reached $97.8 billion, largely from equity securities including investments in Anthropic and SpaceX. Shares fell 3% after hours but analysts expect a rebound due to the cloud revenue beat.
Source report
Topline
Alphabet reported its 12th consecutive quarter of double-digit revenue growth on Wednesday, fueled by another surge in Google Cloud sales and the revelation that nearly 1 billion people now use the company's AI models.
Key Facts
- Revenue: Alphabet reported second-quarter revenue of $119.8 billion, a 24% year-over-year increase, surpassing Wall Street projections of $117 billion (FactSet).
- Earnings per share: The Google parent posted $9.11 EPS, a 295% year-over-year surge, smashing consensus analyst estimates of $2.88 EPS.
- Google Cloud: Revenue surged 82% to $24.8 billion, above estimates of $22.4 billion. Operating income from the segment more than tripled to $8.8 billion, driven by demand for AI products and infrastructure.
- Gemini users: CEO Sundar Pichai stated that Gemini now has 950 million monthly active users, up from 750 million reported in Q4 2025.
- Stock reaction: Alphabet shares fell approximately 3% following the earnings report. However, Deepwater Asset Management analyst Gene Munster suggested shares could rise on Thursday, citing the Google Cloud revenue jump as "the most important number and it was a massive beat."
What to Watch For
How Alphabet's spending compares to its mega-cap competitors. The company reported $44.9 billion in capital expenditures through its latest quarter, doubling its figure from last year. Earlier estimates from Amazon, Alphabet, Microsoft, and Meta indicated the firms would spend up to $750 billion this year as each works to meet growing demand for AI products.
Big Number
$97.8 billion — That is how much Alphabet earned from "other income," up from just $2.2 billion last year. Alphabet attributed the increase largely to its equity securities, which include investments in Anthropic and SpaceX.
Key Background
Alphabet's three-year streak of quarterly revenue growth reflects the tech giant's aggressive pivot toward AI. The Google parent has committed hundreds of billions of dollars to build data centers and other AI projects. The firm reportedly plans to develop a new in-house AI chip that Google engineers expect to be up to 10 times more energy-efficient than its predecessor. Pichai said Alphabet's AI investments are "redefining what's possible across every part of our business," noting its "full-stack approach to AI delivering real, measurable value" to consumers.
Further Reading
- Forbes: Alphabet Rally Boosts Google Cofounder Fortunes By $15 Billion—Here's Why Shares Are Up
Source
Forbes - BusinessWestern
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