Alphabet reported a strong second quarter for 2026, with revenue rising 24% year-on-year to $119.8 billion, driven by robust growth across Google Search, Google Cloud and YouTube as artificial intelligence continued to fuel demand across its businesses.
Advertising remained the company’s largest revenue driver, with Google Advertising generating $81.6 billion, up from $71.3 billion a year earlier. Growth was led by Google Search, which contributed $63.3 billion, while YouTube advertising revenue climbed to $11.1 billion. Revenue from the Google Network business remained largely stable during the quarter.
Alphabet’s Google Services division, which includes Search, YouTube, Android and subscription businesses, reported revenue of $94.5 billion, reflecting continued consumer engagement across its ecosystem.
Google Cloud emerged as the company’s fastest-growing segment, posting an 82% year-on-year increase in revenue to $24.8 billion. Operating income for the cloud business more than tripled to $8.8 billion, supported by growing enterprise demand for AI infrastructure and cloud-based solutions.
Overall, Alphabet reported operating income of $40.8 billion, with operating margins improving to 34% from 32% a year ago. Net income also surged, aided by significant unrealised gains on equity investments.
Commenting on the results, Sundar Pichai, CEO of Google and Alphabet, said AI continues to drive growth across the company’s products and services. He noted that nearly 90% of Fortune 100 companies now use Gemini Enterprise, while Gemini models process 22 billion API tokens every minute. Pichai also highlighted that the Gemini app has reached 950 million monthly active users, and AI-powered features continue to enhance Search performance. On YouTube, he revealed that more than 1.7 billion unique viewers watched FIFA World Cup 2026-related content, underscoring the platform’s global reach.
