Alphabet Inc (google) Class C NASDAQ:GOOG

Google parent company Alphabet sees profit rise sharply thanks to AI boom

Published July 23, 2026 at 10:01 a.m. UTC

Source: MarketScreener

Key takeaways

Alphabet beat financial forecasts with total revenue of 119.8 billion dollars (104.8 billion euros).
Strategic investments in AI are accelerating cloud growth and user adoption.
Strong advertising revenues and gains on share prices led to a sharp increase in profits.

Alphabet Inc., the parent company of Google, beat financial forecasts for the second quarter, demonstrating that its substantial investments in AI, combined with robust advertising revenues, are delivering positive results. In the period from April to June, Alphabet reported a profit of 112.11 billion dollars (98.1 billion euros), or 9.11 dollars per share. That is a significant increase compared to the 28.2 billion dollars (24.7 billion euros), or 2.31 dollars per share, in the same period last year.

Revenue growth

Total revenue rose by 24 percent to 119.8 billion dollars (104.8 billion euros), exceeding the average analyst expectation of 117.06 billion dollars (102.4 billion euros). A substantial part of the company’s net profit of 98 billion dollars (85.7 billion euros) was attributable to the increase in value of its equity investments, most notably SpaceX following its stock market listing in June.

Although Alphabet has not provided adjusted earnings figures that match analysts’ estimate of 2.88 dollars per share, overall growth remains strong.

Impact of AI

CEO Sundar Pichai noted that the organisation’s focus on AI is transforming every facet of its operations. Industry expert Nate Elliott of Emarketer described these results as remarkable, saying that Gemini is close to reaching the milestone of one billion users, putting it alongside AI Mode and AI Overviews as primary AI tools for consumers. In addition, surging demand for AI for businesses is driving rapid growth in the cloud sector.

Advertising remains the biggest engine

The company’s financial success was largely driven by its leading search engine and digital advertising, with YouTube benefiting significantly from promotions around the Football World Cup.

At the same time, the cloud division received a boost thanks to an extensive AI ecosystem that includes in-house chips, security frameworks and data models. (lv)

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