Alphabet Q2 FY2026: revenue jumps 24%, profit is mostly a paper gain
Alphabet's headline numbers look spectacular: revenue of $119.80 billion, up 24.0%, and diluted EPS of $9.11. But $6.26 of that EPS came from unrealized gains on equity securities, not from selling ads or cloud capacity. Strip that out and EPS was $2.85, under the $2.98 consensus estimate. Operating income of $40.77 billion and a 34% margin show the core business is genuinely strong; free cash flow is negative.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $9.11 is up 294.0% and crushes the $2.98 consensus estimate, but not on operations. A $99.0 billion gain on equity securities added $6.26 to EPS and $77.1 billion to net income, according to the release. Back that gain out and EPS was $2.85, slightly below the $2.98 consensus figure.
Revenue of $119.80 billion is up 24.0% from $96.43 billion a year ago, and the release calls it the 12th consecutive quarter of double-digit growth. Google Services brought in $94.54 billion and Google Cloud $24.77 billion, with Cloud up 82%. US revenue rose 32.0%, so this was broad growth, not one lucky region.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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