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GOOGL · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
An exceptionally strong quarter with 24% revenue growth and 30% operating income growth driven by 82% Google Cloud acceleration and improving margins, though the headline 298% net income jump is almost entirely a non-cash $99.0B unrealized equity-securities gain rather than core operating performance.
Net income
$112,193M
up 297.9% y/y
Revenue
$119,796M
up 24.2% y/y
Operating income
$40,770M
up 30.4% y/y
Gross profit
$73,853M
up 28.1% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Google Search & other | $63,271 · +16.8% |
| YouTube ads | $11,055 · +12.9% |
| Google Network | $7,303 · -0.7% |
| Subscriptions, platforms & devices | $12,911 · +15.2% |
| Google Cloud | $24,768 · +81.8% |
| Other Bets | $382 · +2.4% |
| Hedging gains/losses | $106 |
| Revenue | $119,796 · +24.2% |
| Cost of revenues | $45,943 · +17.7% |
| Gross profit | $73,853 · +28.1% |
| R&D | $18,219 · +31.9% |
| Sales & marketing | $8,403 · +18.3% |
| General & admin | $6,461 · +24.0% |
| Operating income | $40,770 · +30.4% · 34% margin |
| Other income (expense), net* | $97,983 · +3,581% · mostly unrealized equity gain* |
| Pre-tax income | $138,753 · +309% |
| Income tax | $26,560 · +363% |
| Net income | $112,193 · +297.9% · EPS $9.11 diluted |
Verdict: an exceptionally strong quarter with 24% revenue growth and 30% operating income growth driven by 82% Google Cloud acceleration and improving margins, though the headline 298% net income jump is almost entirely a non-cash $99.0B unrealized equity-securities gain rather than core operating performance.
OCF $39,069M; capex $44,924M; free cash flow -$5,855M (Q2); dividend $0.22/share common + $12.15/share preferred declared; no buybacks this quarter (prior year $13,238M); raised $49.6B equity + $20.3B debt in the quarter.
Source and notation
* marks non-cash / ≈ estimated. Source: Alphabet Inc. press release / 10-Q (SEC EDGAR).
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Chart: “GOOGL Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/googl/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/googl/q2-2026"><img src="https://whoreportstoday.com/t/googl/q2-2026/sankey.png" alt="GOOGL Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/googl/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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- Net income surge (+298%) is driven almost entirely by a $99.0B non-cash gain on equity securities (mostly the stake fair-value marks), which also boosted tax provision by ≈$21.9B and net income by ≈$77.1B, per the release's own disclosure.
- Core operating performance was already strong on its own: operating income +30% to $40.77B and operating margin expanded 2pts to 34%, without needing the equity gain.
- Google Cloud is the standout segment story: revenue +82% to $24.8B and segment operating income more than tripled to $8.8B, reflecting AI infrastructure/solutions demand.
- Free cash flow turned negative (-$5.9B) in the quarter as capex nearly doubled y/y to $44.9B to fund AI infrastructure buildout, even as operating cash flow grew to $39.1B.
- Alphabet-level unallocated costs (shared AI R&D, corporate) widened to -$5.79B from -$3.37B, a growing drag not attributed to any single segment.
- Company raised significant capital in the quarter ($49.6B equity, $20.3B debt) to fund AI/compute scale-up, and repurchases were paused (vs $13.2B in Q2 2025), redirecting capital toward buildout.
What distorts the picture in this report and what to watch beyond the headlines.
Tickers: GOOGL (Class A), GOOG (Class C)
GOOGL — Alphabet Inc. is the parent company of Google and other subsidiaries, providing internet-related services and products including search, advertising, cloud computing, and hardware.
It is based in Mountain View, California.
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