10-QPeriod: Q2 FY2026

Alphabet Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 23, 2026For Securities:GOOGLGOOGGOOGMGOOGN

Summary

Alphabet Inc. reported robust financial results for the quarter and first six months ended June 30, 2026. Total revenues surged by 24% year-over-year to $119.8 billion for the quarter, driven by strong performance across both Google Services and Google Cloud segments. Google Services revenue saw a 15% increase, while Google Cloud experienced an impressive 82% growth, highlighting the continued expansion of its cloud offerings. The company's net income available to common stockholders more than tripled to $112.1 billion for the six-month period, largely influenced by significant gains in its equity securities portfolio, notably from investments in SpaceX and a private company. This substantial boost in 'Other Income (Expense), net' significantly impacted the diluted earnings per share, which rose to $9.11 for the quarter. Alphabet also strengthened its financial position by raising approximately $49.6 billion in net proceeds through a combination of equity and mandatory convertible preferred stock issuances in June 2026, earmarked for scaling AI infrastructure and global compute capabilities.

Key Highlights

  • 1Revenue grew 24% year-over-year to $119.8 billion in the second quarter of 2026, fueled by strong performance in Google Services and significant acceleration in Google Cloud.
  • 2Google Cloud revenue increased by an impressive 82% year-over-year, underscoring its strategic importance and rapid expansion.
  • 3Net income available to common stockholders more than tripled year-over-year for the six-month period, reaching $112.1 billion, largely due to substantial gains from equity investments.
  • 4The company raised approximately $49.6 billion in net proceeds in June 2026 through the issuance of Class A and Class C stock, and mandatory convertible preferred stock, to fund AI infrastructure growth.
  • 5Capital expenditures more than doubled year-over-year for the first six months of 2026, reaching $80.6 billion, reflecting significant investments in technical infrastructure.
  • 6Long-term debt increased significantly to $98.2 billion by June 30, 2026, due to substantial issuances of senior unsecured notes in various currencies.
  • 7Alphabet is facing ongoing legal and regulatory challenges, including significant fines and antitrust litigation across multiple jurisdictions, with substantial charges recorded for certain legal matters.

Frequently Asked Questions

The substantial increase in 'Other Income (Expense), net' to $98.0 billion for the quarter ended June 30, 2026, was primarily driven by significant unrealized gains on equity securities, notably from Alphabet's investments in SpaceX and a private company. These gains, totaling $99.0 billion for the quarter, significantly boosted net income.

In June 2026, Alphabet raised approximately $49.6 billion in net proceeds through a combination of issuing Class A and Class C stock, and 6.25% Mandatory Convertible Preferred Stock. These funds are earmarked for general corporate purposes, with a specific focus on capital expenditures to scale AI infrastructure and global compute capabilities.

Alphabet is actively engaged in numerous antitrust investigations and litigation globally. In July 2026, the European Commission's 2018 decision regarding Android distribution agreements was upheld, resulting in a $5.2 billion fine and interest payment. The company also faces ongoing litigation concerning Search, AdTech, and Google Play practices in the US and Europe, with significant charges and potential remedies being addressed. A recent decision in a private action regarding shopping search results resulted in a $2.1 billion award, which Alphabet is appealing.

Google Cloud has shown exceptional growth, with revenues increasing by 82% year-over-year to $24.8 billion in the second quarter of 2026. This segment's operating income also saw substantial growth, reaching $8.8 billion for the quarter, highlighting its increasing strategic importance and contribution to Alphabet's financial performance. The acquisition of Wiz in March 2026 is expected to further bolster its AI-driven security capabilities.