Alphabet reported Q2 2026 earnings after market close on July 22. Revenue Beats Estimates came in at approximately $119.8 billion (some sources round to $120 billion), beating consensus estimates of $116.91 billion by about $2.8 billion. GAAP earnings per share were $9.11 against a consensus of $2.90, though net profit of $112 billion, as reported by some sources, included a $99 billion unrealized gain on equity investments, primarily from Anthropic and SpaceX.

Cloud Growth and AI Investment

Google Cloud revenue rose a reported 82% year-over-year to $24.8 billion, beating expectations. Cloud Growth operating margin stood at 36%. By comparison, in Q1 2026, Cloud Growth revenue was $20 billion (up 63% year-over-year). Advertising revenue grew 14% to $81.6 billion, with Google Search up 17% to $63.3 billion and YouTube ads up 13% to $11.1 billion. Subscriptions, platforms, and devices revenue climbed 15% to $12.9 billion.

Overall Q2 gross margin was 62%, operating margin 34% (down from 36.1% in Q1). Operating cash flow reached $39.1 billion, up 39% year-over-year. However, free cash flow was negative $5.9 billion, driven by capital expenditures of $44.9 billion. Alphabet raised its full-year 2026 capex forecast to $195-$205 billion (from $180-$190 billion). The company ended Q2 with $242.5 billion in cash and marketable securities and long-term debt of $98.2 billion.

Antitrust, Gemini Delays, and Stock Performance

The EU Court of Justice finalized a €4.1 billion ($4.67 billion) Android antitrust fine, and the European Commission is forcing Google Search to open parts of Android. The Gemini Delays 3.5 Pro model has been delayed. Alphabet has invested $190 billion in AI technology since 2025. The Gemini Delays AI app now has 950 million monthly active users and processes 22 billion tokens per minute.

Alphabet shares fell approximately 3-4% in after-hours trading following Q2 earnings.

Alphabet stock reached an all-time high of $404.38 on May 18, 2026, but traded in a range between $333.20 (June 26 low) and $374.23 before earnings. Following the report, shares fell approximately 3-4% in after-hours trading. The company reportedly reached its 12th consecutive quarter of revenue gains.