Key Highlights

● Group revenue was $119.8 billion in the quarter ended 30 June 2026, up 24%.

● Google Cloud revenue rose 82% to $24.8 billion, with $8.8 billion of operating income.

● Capital spending reached $44.9 billion, and quarterly free cash flow was negative $5.9 billion.

● Alphabet raised about $49.6 billion through equity and $20.3 billion through senior notes.

The latest verified development

Alphabet Inc. (NASDAQ:GOOGL), whose Class A shares carry one vote each, reported second-quarter 2026 results on 22 July 2026. The Class C line trades separately as GOOG.

Search and advertising

Group revenue for the quarter ended 30 June 2026 was $119.8 billion, up 24%, or 23% in constant currency, marking a twelfth straight quarter of double-digit growth. Google Services revenue was $94.5 billion, up 15%. Within it, Search and other revenue grew 17% to $63.3 billion and YouTube advertising rose 13% to $11.1 billion.

Operating income was $40.8 billion, up 30%, a 34% margin. The company's reported net income of $112.1 billion and diluted earnings per share of $9.11 were inflated by a $99.0 billion gain on equity securities, which contributed $6.26 to earnings per share. Excluding that gain, earnings per share would be about $2.85, compared with $2.31 a year earlier.

Cloud acceleration

Google Cloud revenue was $24.8 billion, up 82%, with operating income of $8.8 billion against $2.8 billion a year earlier. That is a margin of roughly 35%. Chief executive Sundar Pichai called it an amazing quarter, pointing to the revenue growth and to Cloud growth accelerating.

Cloud is now about a fifth of group revenue, and its profit contribution is large relative to its size. Cloud's $8.8 billion of operating income equals about 22% of the group total of $40.8 billion. The release did not disclose backlog, so the durability of that growth cannot be judged from the filing alone.

Spending and funding

Purchases of property and equipment reached $44.9 billion in the quarter. Free cash flow was negative $5.9 billion for the quarter, although it was $53.3 billion over the trailing twelve months. Alphabet repurchased no shares in the quarter, compared with $13.2 billion a year earlier.

Funding came from outside the business. The company reported about $49.6 billion in net proceeds from an equity issuance in June and $20.3 billion from senior unsecured notes during the quarter. The board declared a quarterly dividend of $0.22 per share on Class A, Class B and Class C stock, payable on 14 September 2026. The two sources of outside capital total about $69.9 billion.

Index membership

Alphabet is a constituent of both the S&P 500 and the Nasdaq-100. In the S&P 500 the Class A shares rank fifth by index weight and the Class C shares sixth, so the two lines together make up a large share of cap-weighted benchmarks.

Google Services contributed about 79% of group revenue, which underlines how much the group still depends on advertising even as Cloud expands.

Alphabet capital spending and Cloud growth to watch

Capital spending of $44.9 billion in the quarter, free cash flow of negative $5.9 billion and about $69.9 billion raised from outside the business form the gap that Cloud, at 82% growth and $8.8 billion of operating income, is set against.