GOOGL Q2 2026 Financial Report Summary Google has submitted an almost impeccable financial report, once again proving that AI investments are being translated into real revenue and profits. core data Revenue of $119.8 billion, a year-on-year increase of 24%, exceeded market expectations of $116.9 billion. 2. EPS was $9.11, far higher than the market expectation of about $2.9. 3. Operating profit was 40.8 billion US dollars, a year-on-year increase of 30%. 4. The operating profit margin has increased to 34%, an increase of 2 percentage points compared to the same period last year. 5. Net profit was 112.1 billion US dollars, a year-on-year increase of 298%. (Mainly including unrealized returns on investment securities) Google Cloud has once again become the biggest highlight 1. Google Cloud's revenue reached $24.8 billion, a year-on-year increase of 82%, far exceeding market expectations of $22.4 billion. 2. The operating profit of cloud business reached 8.8 billion US dollars, a year-on-year increase of 212%. 3. The management stated that the growth mainly comes from enterprise AI solutions, AI infrastructure, and Google Cloud Platform (GCP). This indicates that AI has not only driven the growth of cloud business revenue, but also significantly improved profitability. The search business remains strong Many people are worried that AI will impact Google Search. But the fact is exactly the opposite. Google Search revenue reached $63.3 billion, a year-on-year increase of 17%. Advertising revenue reached 81.6 billion US dollars, a year-on-year increase of 14%. YouTube's advertising revenue reached $11.1 billion, a year-on-year increase of 13%. AI functions such as AI Overview and Gemini have not weakened the search business, but instead helped increase user usage frequency and search demand. Gemini is rapidly expanding Management disclosure: Gemini Enterprise has been adopted by nearly 90% of the Fortune 100 companies. The Gemini model currently processes 22 billion API Tokens per minute. 3. The Gemini App has reached 950 million monthly active users. Google states that Gemini 3.5 Flash Cyber has become one of the most cost-effective network security models currently available. These data indicate that Gemini has begun to become an important growth engine for the Google AI ecosystem. CapEx hits a new high again Capital expenditures (CapEx) for this quarter reached $44.9 billion, a year-on-year increase of 100%, setting a new historical high and exceeding market expectations. Over the past five quarters, CapEx has been as follows: Q2'25: 22.4 billion US dollars Q3'25: 24 billion US dollars Q4'25: 27.9 billion US dollars Q1'26: 35.7 billion US dollars Q2'26: 44.9 billion US dollars CapEx has accelerated its growth for multiple consecutive quarters, indicating that Google is still expanding its AI data centers and global computing infrastructure. Financing nearly $50 billion for AI infrastructure Google also disclosed that in June of this year, the company issued $49.6 billion in new shares and mandatory convertible preferred stock. The management has clearly stated that this funding will mainly be used for AI infrastructure construction, global computing power expansion, and other general enterprise purposes This also means that Google is preparing funds in advance for continued expansion of AI investment in the coming years. My opinion This financial report once again demonstrates that the current AI investment cycle has not slowed down. Google Cloud's growth rate continues to accelerate, AI products continue to expand their user base, and CapEx once again breaks historical records. The company even raised nearly $50 billion specifically to expand its AI infrastructure. As of now, several of the world's largest cloud providers have shown no signs of reducing their AI capital expenditures. We are constantly increasing our investment scale every quarter. The construction of AI infrastructure is still accelerating, and demand remains strong.