Alphabet reported blockbuster Q2 2026 results on July 22, with revenue surging 24% year-over-year to $119.8 billion, driven overwhelmingly by AI adoption across the business.
Cloud leads the charge
Google Cloud was the standout performer, with revenue accelerating 82% to $24.77 billion — up from $13.62 billion a year ago. The cloud backlog swelled to $514 billion, up from $462 billion in Q1. Sundar Pichai cited "strong, diversified demand across products, customers, geographies, and industries," with nearly 90% of the Fortune 100 now using Gemini Enterprise.
Cloud customer acquisition velocity more than doubled year-over-year, and existing customers exceeded their commitments by more than 50% — an acceleration over last quarter. Transactions on Google Cloud Marketplace grew over seven times year-over-year.
Gemini's explosive growth
The Gemini App now has 950 million monthly active users — up from 900 million in May and 750 million at Q4 2025. Daily active users have tripled in the last year. Model APIs process approximately 22 billion tokens per minute, up from 16 billion just a quarter ago. More than 9 million developers build with Google's models each month.
Nearly 500 Cloud customers each processed more than 1 trillion tokens in the last year, with over 2,000 enterprises consuming over 100 billion tokens.
New models, agentic platforms
Google launched Gemini 3.6 Flash and Gemini 3.5 Flash-Lite for cost-efficient workloads, plus Gemini 3.5 Flash Cyber paired with CodeMender for code vulnerability detection. The agentic development platform Antigravity reached 2.4 million weekly active users, with one Chrome team accelerating delivery by 8× — compressing a two-year timeline into three months.
The company confirmed it has started its "most ambitious pre-training run yet" for Gemini 4.
Infrastructure spend doubles
Capital expenditure doubled to $44.9 billion for the quarter as AI infrastructure investment accelerates. Google's Virgo Network can connect a million AI accelerators across multiple data center sites. The new agent-optimized Axion CPU provides 30% better performance per dollar compared to peer offerings.
YouTube and Search
YouTube ad revenue rose 13% to $11.06 billion, with over 1.7 billion unique viewers watching World Cup-related content. Search & Other revenue grew 17%, with AI Overviews and AI Mode driving expanded query volume. AI Mode surpassed 1 billion monthly active users since global expansion last October.
Waymo and Other Bets
Waymo introduced its Ojai vehicle with the sixth-generation Waymo Driver. Wing completed over 1 million home deliveries. Isomorphic Labs raised over $2 billion for AI-driven drug design.
Alphabet's Q2 net income was $112.1 billion (including a significant one-time gain), versus $28.2 billion a year ago.
