Google’s parent company posted robust revenue growth as AI investments and cloud demand accelerated.
Tech giant Alphabet reported on Wednesday a net profit of $174,685 million for the first half of the 2026 fiscal year, a 178% increase from he same period last year, driven by its advertising and artificial intelligence (AI) businesses.
Google’s parent company reported cumulative revenue of $229,692 million in the first six months of 2026, up 23% year-over-year, according to a statement released after the close of trading on Wall Street.
“Our investments in AI are redefining what’s possible in every part of our business,” said Alphabet CEO Sundar Pichai in the statement, which also detailed the second-quarter results, described as “incredible.”
For the second quarter (the one most closely watched by analysts and investors) the tech company posted a net profit of 112.1 billion, nearly four times higher than the prior year, while revenue climbed 24% to 119.7 billion.
The sharp increase in quarterly profits is primarily due to Alphabet’s equity portfolio, which increased in value by approximately $99 billion (compared to $1 billion during the same period last year). Financial media linked the increase to the company’s investments in Anthropic and SpaceX.
By business segment, in the second quarter, Google Services (which includes the search engine, YouTube advertising, and subscriptions) generated 94.5 billion, while Google Cloud, the AI-powered cloud service, generated 24,768 million.
Pichai noted that “demand for AI infrastructure and AI solutions” drove 82% growth at Google Cloud. He also said that most of the Fortune100 companies now use the company’s Gemini Enterprise AI assistant.
The CEO added that the Gemini app has reached 950 million monthly active users and highlighted a strong demand for “security solutions,” including Gemini 3.5 Flash Cyber.
Alphabet’s capital expenditures reached 49.6 billion in the second quarter, which include investments to “scale AI and global computing infrastructure”.
Alphabet is the first of the “Magnificent Seven” (the world’s largest tech companies) to report its quarterly results amid intense scrutiny over the development of AI, and the rest will largely do so next week.
Following the earnings announcement, Alphabet shares fell 1.5% in electronic trading.
