Highlights

  • Alphabet increased group revenue and operating income, with Google Services continuing to supply the largest reported revenue contribution.
  • Google Cloud expanded sales sharply and increased operating income compared with the corresponding quarter of the previous year.
  • Search and other revenue and YouTube advertising both increased, adding growth within the company’s larger Google Services business.
  • Heavy capital expenditure left quarterly free cash flow negative, while a securities gain materially affected the reported net earnings.

Cloud’s faster expansion sits alongside continued Search growth in the latest supplied results for Alphabet Inc. (NASDAQ:GOOGL). Second-quarter 2026 revenue increased 24% to USD 119.8 billion, while Google Cloud grew 82%. The Class A shares carry one vote each, but their holders share the same underlying operating results and capital-spending demands as Alphabet’s other common share classes.

Search Anchors the Larger Services Business

Results published on 22 July covered the quarter ended 30 June. Group revenue grew 23% in constant currency, compared with the 24% reported increase. The company described the period as its twelfth consecutive quarter of double-digit growth.

Google Services revenue reached USD 94.5 billion, up 15%. Within that business, Search and other revenue increased 17% to USD 63.3 billion, while YouTube advertising rose 13% to USD 11.1 billion.

Cloud Adds Revenue and Operating Income

Google Cloud generated USD 24.8 billion in revenue, up 82%. Its operating income reached USD 8.8 billion, compared with USD 2.8 billion a year earlier.

The source does not disclose Cloud backlog. Revenue growth therefore cannot establish the value of future contracted sales or guarantee that the same pace will continue in later quarters.

Chief executive Sundar Pichai highlighted group revenue growth and the acceleration in Cloud. His commentary provides management’s explanation of the quarter’s emphasis, rather than a separate quantified forecast for subsequent periods.

Operating Profit Differs From Headline Earnings

Group operating income increased 30% to USD 40.8 billion, with a 34% operating margin. Reported net income was USD 112.1 billion and diluted earnings per share were USD 9.11.

The net result included a USD 99.0 billion gain on equity securities. That investment-related gain materially affects the headline profit figure and should not be presented as earnings generated by Search or Cloud operations.

The supplied document provides only a summary of the earnings components. It does not support reconstructing a full independently adjusted net-income measure, so the reported operating and net figures are kept separate without adding a new earnings calculation.

Spending and Financing Broaden the Picture

Purchases of property and equipment reached USD 44.9 billion during the quarter. Free cash flow was negative USD 5.9 billion, although trailing-twelve-month free cash flow remained positive at USD 53.3 billion.

Alphabet reported approximately USD 49.6 billion of net proceeds from a June equity issuance and USD 20.3 billion from senior unsecured notes. It made no share repurchases, compared with USD 13.2 billion a year earlier.

The board declared a quarterly dividend of USD 0.22 per share for Class A, Class B and Class C stock, payable on 14 September 2026. That common dividend does not remove the classes’ different voting rights.

The source does not confirm a date for third-quarter results. Subsequent disclosure would be needed to establish the next period’s Cloud and Search growth, capital expenditure and cash generation. The second-quarter figures show expansion, while the spending burden and investment gain require separate consideration within the same financial account.