Alphabet $GOOGL reported second-quarter revenue of $119.8 billion on Wednesday, up 24% year over year, as Google Cloud posted its strongest growth in recent quarters and net income rose on a large investment gain.
Google Cloud revenue reached $24.8 billion, more than doubling from a year earlier, as total revenue hit $119.8 billion
Bloomberg / Getty Images
Alphabet $GOOGL reported second-quarter revenue of $119.8 billion on Wednesday, up 24% year over year, as Google Cloud posted its strongest growth in recent quarters and net income rose on a large investment gain.
Google Cloud revenue climbed 82% to $24.8 billion, driven by demand for AI infrastructure and enterprise AI solutions, the company said. Cloud operating income reached $8.8 billion, up from $2.8 billion in the same period a year earlier. Analysts had forecast $116.93 billion in revenue, making the $119.8 billion result a beat, according to CNBC.
Google Services revenue rose 15% to $94.5 billion. Within that segment, Google Search and other revenue grew 17% to $63.3 billion, YouTube advertising revenue increased 13% to $11.1 billion, and subscriptions, platforms, and devices revenue rose 15% to $12.9 billion.
Consolidated operating income increased 30% to $40.8 billion, with operating margin expanding two percentage points to 34%. Net income available to common stockholders reached $112.1 billion, up from $28.2 billion a year earlier, though that figure included a $99.0 billion net gain in other income primarily from unrealized gains on equity securities. Diluted earnings per share came in at $9.11, up from $2.31 a year earlier.
Capital expenditures totaled $44.9 billion in the quarter. Free cash flow was negative $5.9 billion for the period, as spending on property and equipment outpaced operating cash flow.
"Our AI investments are redefining what's possible across every part of our business," CEO Sundar Pichai said in a statement. Pichai cited demand for AI infrastructure and solutions as the driver of Cloud's acceleration and said nearly 90% of the Fortune 100 are using the company's Gemini Enterprise product.
Alphabet ended the quarter with 198,933 employees, up from 187,103 a year earlier.
The results extend a run of growth that accelerated through the first quarter, when Alphabet posted revenue of $109.9 billion and Google Cloud grew 63% to $20.0 billion. Cloud's 82% growth this quarter marks a meaningful step up from that pace, as well as from the 48% growth the segment posted in the fourth quarter of 2025.
To support its AI infrastructure expansion, Alphabet raised $49.6 billion by issuing stock in June and brought in $20.3 billion from senior unsecured notes in the second quarter, according to the company. The board also announced a quarterly cash dividend of $0.22 per share for Class A, B, and C stock, payable on September 14, 2026.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.