Alphabet delivered a standout second quarter for 2026, with its cloud business emerging as the company’s fastest-growing segment, as enterprises ramp up spending on artificial intelligence (AI) infrastructure and services.
The Google parent company reported Google Cloud revenue of $24.8 billion for the quarter ended 30 June, an 82% year-on-year increase from $13.6 billion a year earlier.
The cloud division also posted a sharp improvement in profitability, with operating income more than tripling to $8.8 billion, up from $2.8 billion in the second quarter of 2025.
Alphabet attributed the strong performance to accelerating demand for Google Cloud Platform, particularly its enterprise AI offerings.
Overall, Alphabet reported consolidated revenue of $119.8 billion, up 24% year-on-year, marking its 12th consecutive quarter of double-digit revenue growth.
Operating income increased 30% to $40.8 billion, while operating margin expanded to 34%, from 32% a year earlier.
Google Services, which includes Search, YouTube and subscriptions, generated $94.5 billion in revenue, up 15%.
Google Search and other revenue rose 17% to $63.3 billion, YouTube advertising revenue increased 13% to $11.1 billion, while Google subscriptions, platforms and devices grew 15% to $12.9 billion.
Sundar Pichai, CEO of Google and Alphabet, says: “Our AI investments are redefining what’s possible across every part of our business. Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions.
“It’s great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it. We have exciting momentum across the board. Our popular AI features are driving Search query growth.”
According to Pichai, Gemini models now process 22 billion API tokens per minute and the Gemini App has 950 million monthly active users.
“We are seeing strong demand for our security solutions, and our new Gemini 3.5 Flash Cyber delivers highly cost-efficient performance at the frontier. And month over month, people turn to YouTube for major world events, with over 1.7 billion unique viewers watching World Cup-related videos during the FIFA World Cup 2026. These outstanding results show that our differentiated, full stack approach to AI is delivering real, measurable value for consumers, customers and our partners globally.”
The latest results underscore the growing importance of cloud computing to Alphabet’s broader AI strategy.
The company says growth in Google Cloud was led by increased adoption of enterprise AI solutions, AI infrastructure and its core cloud platform services.
Google Cloud accounted for approximately 21% of Alphabet’s total quarterly revenue, up from around 14% a year earlier, highlighting the segment’s increasing contribution to the company’s overall business.
Across the group, net income available to common stockholders surged 298% to $112.1 billion, while diluted earnings per share climbed 294% to $9.11.
Alphabet says other income reached $98 billion, primarily reflecting net unrealised gains on its equity securities.
The company's workforce also continued to expand, with headcount rising to 198 933 employees, compared with 187 103 a year earlier.
The results reinforce the intense competition among hyperscale cloud providers to capitalise on enterprise AI adoption, with Google Cloud continuing to narrow the gap with larger rivals by leveraging its AI infrastructure, Gemini models and integrated cloud services.
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