Key highlights:
- Overall Growth: Revenue hit $119.8 billion, up 24% year-over-year, marking 12 straight quarters of double-digit revenue growth. Google Cloud Expansion: Cloud revenue surged 82% to $24.8 billion, driven by enterprise demand for AI infrastructure and solutions (with nearly 90% of Fortune 100 companies using Gemini Enterprise).
- Core Search & Advertising: Google Services revenue rose 15% to $94.5 billion, led by strong Search (+17%) and YouTube ad growth (+13%). Heavy AI Investment: Capital expenditures jumped significantly to $44.9 billion to scale AI infrastructure, pushing Free Cash Flow for the quarter to -$5.9 billion.
- Earnings Rise: Net income surged 298% to $112.2 billion (EPS of $9.11), but this was mostly due to a $98.0 billion paper gain on equity investments rather than core operational profits.
- CapEx for Q2 2026 reached $44.92 billion. This is a 100% increase compared to the $22.45 billion spent in Q2 2025, and up significantly from $35.67 billion in Q1 2026.
Full-Year Outlook & Financing
- Raised 2026 Guidance: Management updated its full-year 2026 CapEx forecast to $195 billion – $205 billion (up from its prior guidance of $180 billion – $190 billion). Executives indicated that CapEx is expected to increase significantly again in 2027.
- Capital Raises to Support Spending: To fund this aggressive infrastructure buildout, Alphabet raised $49.6 billion in net proceeds through stock/preferred equity issuances in June 2026 and $20.3 billion through senior unsecured notes.