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Alphabet posts record Q2 revenue and fast Google Cloud growth, shares slide
Total revenue rose to $119.8 billion, while Google Cloud revenue jumped 82% to $24.8 billion as investors honed in on rising capital spending and negative free cash flow.
Alphabet reported Q2 2026 results after the close on Wednesday, posting record revenue of $119.8 billion, up 24% year over year from $96.4 billion, and extending its streak of 12 straight quarters of double-digit growth, MarketBeat Ratings said.
Google Cloud emerged as the standout, with revenue surging 82% year over year to $24.8 billion, topping about $22.3 billion modeled by analysts. Cloud operating income more than tripled to $8.8 billion, Google Services grew 15% to $94.5 billion, and Search and other revenue rose 17% to $63.3 billion.
Despite the upbeat operating picture, Alphabet shares fell in after-hours trading, with the article pointing to market concerns about surging capital expenditures and negative free cash flow. Google Cloud backlog increased to $514 billion from $462 billion last quarter.
Alphabet also reported net income of $112.1 billion, up 298% year over year, and diluted EPS of $9.11, up 294%, both well above analyst expectations, but the outlet noted that the figures were heavily influenced by a $99 billion gain on equity securities rather than core operations.