MOUNTAIN VIEW — Alphabet reported second-quarter earnings on July 22, 2026, driven by equity gains from its stakes in SpaceX and Anthropic. The company posted earnings per share of $9.11 for the period. Second-quarter revenue reached $119.8 billion, a 24% increase from $96.43 billion in the same period a year earlier.

This figure surpassed the $117.06 billion analysts had expected, according to a FactSet poll. The company reported a net gain for the quarter, mainly attributable to gains on equity investments, largely in SpaceX. SpaceX went public in June 2026. Alphabet did not disclose an adjusted earnings figure comparable to the analyst expectation of $2.88 per share.

Bank of America estimated a boost to Alphabet's second-quarter operating income from the revaluation of its stake in Anthropic. Alphabet holds approximately 14% of the artificial intelligence company. Anthropic's valuation rose in the second quarter following a fundraising round.

The valuation was $380 billion at the end of the first quarter. Bank of America reiterated its buy rating on Alphabet with a price objective. The firm raised its second-quarter earnings per share estimate for the company, compared to the Street consensus of $2.90.

"Our AI investments are redefining what’s possible across every part of our business." Alphabet CEO Sundar Pichai said. He noted that since upgrading AI overviews and AI Mode to Gemini 3, the company has reduced the cost of core AI responses. "Queries are at an all time high." Pichai added.

Bank of America raised its Google Cloud growth estimate for the second quarter. Alphabet's Google Cloud backlog stood at $462 billion after the first quarter. During that earlier period, Google Cloud revenue was $20 billion, a 63% increase year over year.

Operating income for the cloud division tripled in the first quarter. The operating margin increased compared to the first quarter of 2025. Revenue from products built on Google's generative AI models grew significantly year over year in the first quarter.

"On the consumer side, Gemini is now within a whisker of becoming Google’s third different 1 billion-user consumer AI product, alongside AI Overviews and AI Mode." Analyst Nate Elliott said. "On the enterprise side, AI demand is driving enormous growth in the cloud business." Elliott said. "And continued strong growth in search advertising backs up Google’s claim that AI is additive to search, not a replacement." Revenue from products built on Google's generative AI models grew significantly year-over-year, according to Alphabet CFO Anat Ashkenazi. "Revenue from products built on our GenAI models grew nearly 800% year-over-year." Ashkenazi said.

Alphabet's full-year 2025 revenue was $402.84 billion, with earnings per share of $10.81. The company raised its dividend by 5% to $0.22 per share. Its consolidated operating margin and return on equity were reported for the first quarter. Revenue from products built on Google's generative AI models grew nearly 800% year-over-year, according to Alphabet CFO Anat Ashkenazi.

YouTube ad revenue totaled $9.883 billion in the first quarter. Search and other revenue was $60.399 billion in the first quarter of 2026, a 19% year-over-year increase. Alphabet spent $35.7 billion on capital expenditures in the first quarter. Wall Street expects second-quarter capital expenditures. The company plans to spend as much as $190 billion on capital expenditures for the full year. Wall Street expects operating margin to decrease in the second quarter. Alphabet stock rose over the three months preceding July 22, 2026. The Information reported that Google is developing a new chip codenamed Frozen v2. Following the earnings release, Alphabet shares increased in after-hours trading.