Alphabet reported second-quarter 2026 revenue of USD 119.8 billion, up 24% year over year.
Cloud drove the acceleration. Backed by enterprise AI and infrastructure demand, cloud revenue surged 82% to USD 24.8 billion.
| Segment | Q2 revenue |
|---|---|
| Search advertising | USD 63.2 billion |
| Cloud | USD 24.8 billion (+82%) |
| YouTube advertising | USD 11.1 billion |
| Other bets | USD 382 million (USD 1.8 billion operating loss) |
Advertising still carries the absolute weight, but cloud owns the growth story.
The other side of the numbers is spending. Second-quarter capital expenditure reached USD 44.9 billion, and free cash flow came in at a negative USD 5.86 billion.
Alphabet also raised its annual capex outlook from USD 180–190 billion to USD 195–205 billion, signalling further AI investment next year. After the release, the stock slid further in after-hours trading, moving around the USD 331 level.
USD 63.2 billion in search advertising reads against the narrative that AI search is eating ad revenue. Inventory has not shrunk — not yet. What is changing is the character of the clicks advertisers receive.
The larger the investment, the more Google must keep manufacturing surfaces and formats to recover it. That is the backdrop to the pace of new ad products.
USD 119.8 billion, a 24% increase year over year.
Cloud revenue surged 82% year over year to USD 24.8 billion.
Capital expenditure of USD 44.9 billion pushed free cash flow to a negative USD 5.86 billion, and the annual capex outlook was raised to USD 195–205 billion.
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