Alphabet Q2 FY26 earnings
Revenue $119.8B, up 24% from a year ago. Net income $112.2B.
Alphabet grew revenue 24% to $119.8B. Google Cloud grew 82% from a year ago to 21% of revenue, and Search & other was $63.3B, 53%. Net income of $112.2B, a 94% margin, includes $98.0B of other income, drawn and marked on the card.
Google Cloud: $58.7B in FY25, six and a half times FY19.
Google Cloud brought in $8.9B in FY19 and $58.7B in FY25. Before FY2020 Alphabet reported it as a revenue line rather than a segment; the dollars are unchanged across filings.
YouTube ads: $40.4B in FY25, from $8.2B in FY17.
YouTube ads reached $40.4B in FY25, from $8.2B in FY17, the first year Alphabet disclosed the line. Ads only: YouTube subscriptions are filed in another line, as each 10-K states.
Where the revenue came from
| Segment | Amount | % of revenue% | Y/Y |
|---|---|---|---|
| Google Search & other | $63.3B | 52.9% | |
| Google Cloud | $24.8B | 20.7% | +82% |
| Google subscriptions, platforms, and devices | $12.9B | 10.8% | |
| YouTube ads | $11.1B | 9.2% | |
| Google Network | $7.3B | 6.1% | |
| Other Bets | $382M | 0.3% | +2% |
The quarter, line by line
| Line | Amount | % of revenue% | Y/Y |
|---|---|---|---|
| Revenue | $119.8B | +24% | |
| Cost of revenue | $45.9B | 38.4% | +18% |
| Gross profit † | $73.9B | 61.6% | +29% |
| Operating expenses † | $33.1B | 27.6% | +27% |
| Operating income | $40.8B | 34.0% | +30% |
| Pretax income | $138.8B | 115.8% | |
| Income tax | $26.6B | 22.2% | +363% |
| Net income | $112.2B | 93.7% | +298% |
Effective tax rate: 19.1%. That is tax as a share of pretax income. The 22.2% in the column above is tax as a share of revenue, which is not a tax rate.
† The filing doesn't print this line. We calculated it from the filed figures; it adds up to the dollar.
The last 8 quarters
| Quarter ended | Revenue | Net income | Net margin |
|---|---|---|---|
| Jun 30, 2026 | $119.8B | $112.2B | 93.7% |
| Mar 31, 2026 | $109.9B | $62.6B | 56.9% |
| Dec 31, 2025 | $113.8B | $34.5B | 30.3% |
| Sep 30, 2025 | $102.3B | $35.0B | 34.2% |
| Jun 30, 2025 | $96.4B | $28.2B | 29.2% |
| Mar 31, 2025 | $90.2B | $34.5B | 38.3% |
| Dec 31, 2024 | $96.5B | $26.5B | 27.5% |
| Sep 30, 2024 | $88.3B | $26.3B | 29.8% |