MOUNTAIN VIEW, California: Alphabet Inc. (NASDAQ: GOOG, GOOGL) reported Q2 profit of $112.1 billion as revenue rose 24% to $119.8 billion in the quarter ended June 30.
Net income available to common shareholders increased 298% from $28.2 billion a year earlier. Operating income rose 30% to $40.77 billion, while Alphabet’s operating margin expanded to 34%.
The record profit largely reflected $98 billion in other income, primarily unrealised gains on equity securities. Alphabet said those gains added $77.1 billion to net income and $6.26 to diluted earnings per share, meaning the headline profit increase did not come solely from its core operations.
Google Cloud revenue jumped 82% to $24.77 billion from $13.62 billion, supported by demand for enterprise AI infrastructure and services. Cloud operating income rose to $8.81 billion from $2.83 billion.
Google’s advertising revenue increased to $81.63 billion. Search and related advertising rose 17% to $63.27 billion, while YouTube advertising revenue grew 13% to $11.06 billion.
Alphabet Chief Executive Officer Sundar Pichai said AI demand drove Cloud growth. The company reported that the Gemini app had reached 950 million monthly active users, and nearly 90% of Fortune 100 companies were using Gemini Enterprise.
Alphabet raised its 2026 capital-expenditure forecast to $195 billion to $205 billion, up from $180 billion to $190 billion. Chief Financial Officer Anat Ashkenazi attributed the revision to faster capacity expansion, while Alphabet shares fell more than 3% during extended trading.
Read: Alphabet Inc. Surpasses $2 Trillion Market Cap After Strong Earnings and AI Growth
The company recorded a negative free cash flow of $5.86 billion after spending $44.92 billion on property and equipment during the quarter.
