EX-99.1 2 googexhibit991q22026.htm EX-99.1 Document Exhibit 99.1 Alphabet Announces Second Quarter 2026 Results MOUNTAIN VIEW, Calif. – July 22, 2026 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended June 30, 2026. • Consolidated Alphabet revenues increased 24%, or 23% in constant currency, to $119.8 billion, reflecting strong performance across the business and our 12th consecutive quarter of double-digit revenue growth. • Google Services revenues increased 15% to $94.5 billion, led by 17% growth in Google Search & other, 15% in Google subscriptions, platforms, and devices, and 13% in YouTube ads. • Google Cloud saw a meaningful acceleration in growth as revenues increased 82% to $24.8 billion, led by an increase in Google Cloud Platform (GCP) across enterprise AI Solutions and enterprise AI Infrastructure, as well as core GCP services. • Consolidated Alphabet operating income increased 30% and operating margin expanded by 2 percentage points to 34%. • Other income reflected a net gain of $98.0 billion, primarily the result of net unrealized gains on our equity securities. • Net income available to common stockholders increased 298% and EPS increased 294% to $9.11. Sundar Pichai, CEO of Google and Alphabet, said: “Our AI investments are redefining what’s possible across every part of our business. Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions. It’s great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it. We have exciting momentum across the board. Our popular AI features are driving Search query growth. Gemini models now process 22 billion API tokens per minute and the Gemini App has 950 million monthly active users. We are seeing strong demand for our security solutions, and our new Gemini 3.5 Flash Cyber delivers highly cost-efficient performance at the frontier. And month over month, people turn to YouTube for major world events, with over 1.7 billion unique viewers watching World Cup-related videos during the FIFA World Cup 2026 TM . These outstanding results show that our differentiated, full stack approach to AI is delivering real, measurable value for consumers, customers, and our partners globally.” Q2 2026 Financial Highlights (unaudited) The following table summarizes our consolidated financial results for the quarters ended June 30, 2025 and 2026 (in millions, except for per share information and percentages). Quarter Ended June 30, 2025 2026 Revenues $ 96,428  $ 119,796  Change in revenues year over year 14  % 24  % Change in constant currency revenues year over year (1) 13  % 23  % Operating income $ 31,271  $ 40,770  Operating margin 32  % 34  % Other income (expense), net $ 2,662  $ 97,983  Net income available to common stockholders $ 28,196  $ 112,107  Diluted net income per common share $ 2.31  $ 9.11  (1)     Non-GAAP measure. See the section captioned “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” for more details. Q2 2026 Supplemental Information (in millions, except for number of employees; unaudited) Revenues, Traffic Acquisition Costs (TAC), and Number of Employees Quarter Ended June 30, 2025 2026 Google Search & other $ 54,190  $ 63,271  YouTube ads 9,796  11,055  Google Network 7,354  7,303  Google advertising 71,340  81,629  Google subscriptions, platforms, and devices 11,203  12,911  Google Services total 82,543  94,540  Google Cloud 13,624  24,768  Other Bets 373  382  Hedging gains (losses) (112) 106  Total revenues $ 96,428  $ 119,796  Total TAC $ 14,705  $ 16,179  Number of employees 187,103 198,933 Segment Operating Results Quarter Ended June 30, 2025 2026 Operating income (loss): Google Services $ 33,063  $ 39,544  Google Cloud 2,826  8,814  Other Bets (1,246) (1,799) Alphabet-level activities (1) (3,372) (5,789) Total income from operations $ 31,271  $ 40,770  (1) Alphabet-level activities primarily reflect expenses related to our shared AI research and development. Additional Information Relating to the Quarter Ended June 30, 2026 (unaudited) Equity Capital Raise In June 2026, we issued a combination of Class A stock and Class C stock and mandatory convertible preferred stock for aggregate net proceeds of $49.6 billion, to be used for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute. Additionally, we entered into an equity distribution agreement with certain sales agents to sell up to $40.0 billion of our Class A stock and Class C stock from time to time through an At-the-Market Program (ATM Program). The proceeds of the ATM Program are primarily intended to be used to meet tax obligations associated with employee equity grants. As of June 30, 2026, we have not sold any shares under the ATM Program. Issuance of Senior Unsecured Notes In the second quarter of 2026, we issued senior unsecured notes for net proceeds of $20.3 billion, to be used for general corporate purposes. 2 Preferred and Common Dividend Programs In July 2026, the company's Board of Directors declared a quarterly cash dividend of $12.15 per share on each of our Series A and Series B mandatory convertible preferred stock (equivalent to approximately $0.60 per each of our Series A and Series B Depositary Shares) and a quarterly cash dividend of $0.22 per share on our Class A, Class B, and Class C stock. The mandatory convertible preferred stock dividend is payable on August 15, 2026 to stockholders of record for each of the company's Series A and Series B shares as of August 1, 2026, and the common stock dividend is payable on September 14, 2026 to stockholders of record for each of the company's Class A, Class B, and Class C shares as of September 7, 2026. Webcast and Conference Call Information A live audio webcast of our second quarter 2026 earnings release call will be available on YouTube at https://www.youtube.com/watch?v=LzExSq9DU9w. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available at http://abc.xyz/investor. We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor). We also share Google news and product updates on Google's Keyword blog at https://www.blog.google/ and News From Google page on X at x.com/NewsFromGoogle, and our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest or material to our investors. Forward-Looki ng Statements This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 and our most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 , which are on file with the SEC and are available on our investor relations website at http://abc.xyz/investor and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, and may be set forth in other reports and filings we make with the SEC. All information provided in this release and in the attachments is as of July 22, 2026 . Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law. About Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: free cash flow; constant currency revenues; and percentage change in constant currency revenues. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign exchange rate movements and hedging activities, which are recognized at the consolidated level. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP. 3 For more information on these non-GAAP financial measures, please see the sections captioned “Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow” and “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” included at the end of this release. Contact Investor relations Media investor-relations@abc.xyz press@abc.xyz 4 Alphabet Inc. CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts) As of December 31, 2025 As of June 30, 2026 (unaudited) Assets Current assets: Cash and cash equivalents $ 30,708  $ 55,911  Marketable securities 96,135  186,563  Total cash, cash equivalents, and marketable securities 126,843  242,474  Accounts receivable, net 62,886  69,175  Inventory 2,439  9,991  Other current assets 13,870  21,884  Total current assets 206,038  343,524  Non-marketable securities 68,687  131,461  Deferred income taxes 9,113  1,448  Property and equipment, net 246,597  321,212  Operating lease assets 15,221  17,694  Goodwill 33,380  57,828  Intangible assets, net 1,283  9,105  Other non-current assets 14,962  39,711  Total assets $ 595,281  $ 921,983  Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 12,200  $ 20,258  Accrued compensation and benefits 17,546  15,086  Accrued expenses and other current liabilities 55,557  73,014  Accrued revenue share 10,864  10,599  Deferred revenue 6,578  7,154  Total current liabilities 102,745  126,111  Long-term debt 46,547  98,165  Income taxes payable, non-current 9,531  11,306  Deferred income taxes 919  22,819  Operating lease liabilities 12,744  14,591  Other long-term liabilities 7,530  8,511  Total liabilities 180,016  281,503  Commitments and contingencies Stockholders’ equity: Series A and Series B preferred stock and additional paid-in capital, $0.001 par value per share, 100 shares authorized; 6.25% mandatory convertible preferred stock, 0 and 19 shares issued and outstanding allocated equally between each series with a liquidation preference of $1,000 per share 0  18,023  Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share: 300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,088 (Class A 5,822, Class B 837, Class C 5,429) and 12,230 (Class A 5,868, Class B 835, Class C 5,527) shares issued and outstanding 93,126  131,371  Accumulated other comprehensive income (loss) (1,916) (2,285) Retained earnings 324,055  493,371  Total stockholders’ equity 415,265  640,480  Total liabilities and stockholders’ equity $ 595,281  $ 921,983  5 Alphabet Inc. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts, unaudited) Quarter Ended June 30, Year To Date June 30, 2025 2026 2025 2026 Revenues $ 96,428  $ 119,796  $ 186,662  $ 229,692  Costs and expenses: Cost of revenues 39,039  45,943  75,400  87,214  Research and development 13,808  18,219  27,364  35,251  Sales and marketing 7,101  8,403  13,273  16,009  General and administrative 5,209  6,461  8,748  10,752  Total costs and expenses 65,157  79,026  124,785  149,226  Income from operations 31,271  40,770  61,877  80,466  Other income (expense), net 2,662  97,983  13,845  135,699  Income before income taxes 33,933  138,753  75,722  216,165  Provision for income taxes 5,737  26,560  12,986  41,394  Net income 28,196  112,193  62,736  174,771  Preferred stock dividends 0  86  0  86  Net income available to common stockholders $ 28,196  $ 112,107  $ 62,736  $ 174,685  Basic net income per common share $ 2.33  $ 9.23  $ 5.16  $ 14.41  Diluted net income per common share $ 2.31  $ 9.11  $ 5.12  $ 14.24  Number of shares used in basic net income per common share calculation 12,122  12,151  12,153  12,125  Number of shares used in diluted net income per common share calculation 12,198  12,309  12,245  12,274  6 Alphabet Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions, unaudited) Quarter Ended June 30, Year To Date June 30, 2025 2026 2025 2026 Operating activities Net income $ 28,196  $ 112,193  $ 62,736  $ 174,771  Adjustments: Depreciation of property and equipment 4,998  7,104  9,485  13,586  Stock-based compensation expense 5,998  7,957  11,514  14,708  Deferred income taxes (444) 20,618  (1,596) 27,538  Loss (gain) on debt and equity securities, net (1,451) (98,999) (11,411) (135,803) Other 560  1,896  1,041  3,161  Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable, net (2,839) (6,541) (1,201) (6,904) Inventory (198) (6,696) (628) (7,739) Income taxes, net (9,631) 203  (2,434) 8,304  Other assets (1,281) (7,590) (2,139) (9,950) Accounts payable 553  2,330  (327) 2,090  Accrued expenses and other liabilities 3,150  6,310  (1,779) 308  Deferred revenue 136  284  636  789  Net cash provided by operating activities 27,747  39,069  63,897  84,859  Investing activities Purchases of property and equipment (22,446) (44,924) (39,643) (80,598) Purchases of marketable securities (21,417) (45,439) (39,870) (76,480) Maturities and sales of marketable securities 20,585  28,695  40,930  66,696  Purchases of non-marketable securities (1,354) (21,145) (2,312) (22,051) Maturities and sales of non-marketable securities 614  819  873  1,667  Acquisitions, net of cash acquired, and purchases of intangible assets (13) (76) (353) (33,697) Other investing activities (513) (363) (363) (1,359) Net cash used in investing activities (24,544) (82,433) (40,738) (145,822) Financing activities Net payments related to stock-based award activities (2,621) (6,573) (5,731) (12,056) Repurchases of stock (13,238) 0  (28,306) 0  Dividend payments (2,543) (2,689) (4,977) (5,231) Proceeds from issuance of common stock, net of costs 0  30,499  0  30,499  Proceeds from issuance of mandatory convertible preferred stock, net of costs 0  19,063  0  19,063  Proceeds from issuance of debt, net of costs 26,846  24,847  31,378  56,226  Repayments of debt (13,876) (3,776) (18,397) (5,253) Proceeds from sale of interest in consolidated entities, net 0  558  400  3,758  Other financing activities (400) (686) (400) (686) Net cash provided by (used in) financing activities (5,832) 61,243  (26,033) 86,320  Effect of exchange rate changes on cash and cash equivalents 401  (31) 444  (154) Net increase (decrease) in cash and cash equivalents (2,228) 17,848  (2,430) 25,203  Cash and cash equivalents at beginning of period 23,264  38,063  23,466  30,708  Cash and cash equivalents at end of period $ 21,036  $ 55,911  $ 21,036  $ 55,911  7 Segment Results The following table presents our segment revenues and operating income (loss) (in millions; unaudited): Quarter Ended June 30, 2025 2026 Revenues: Google Services $ 82,543  $ 94,540  Google Cloud 13,624  24,768  Other Bets 373  382  Hedging gains (losses) (112) 106  Total revenues $ 96,428  $ 119,796  Operating income (loss): Google Services $ 33,063  $ 39,544  Google Cloud 2,826  8,814  Other Bets (1,246) (1,799) Alphabet-level activities (3,372) (5,789) Total income from operations $ 31,271  $ 40,770  We report our segment results as Google Services, Google Cloud, and Other Bets: • Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases; and devices. • Google Cloud includes infrastructure and platform services, applications, and other products and services for enterprise customers. Google Cloud generates services revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services. Google Cloud generates product revenues primarily from the sale of TPU systems. • Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of autonomous transportation services and internet services. Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include: • certain AI-focused shared research and development activities, including employee compensation expenses and technical infrastructure usage costs associated with the development of our general AI models; • corporate initiatives such as our philanthropic activities; and • corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements. Charges associated with employee severance and office space reductions are also not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments. 8 Other Income (Expense), Net The following table presents our other income (expense), net (in millions; unaudited): Quarter Ended June 30, 2025 2026 Interest income $ 1,050  $ 1,430  Interest expense (261) (1,278) Foreign currency exchange gain (loss), net (69) (160) Gain (loss) on debt securities, net 165  (32) Gain (loss) on equity securities, net (1) 1,286  99,031  Income (loss) and impairment from equity method investments, net 419  (35) Other 72  (973) Other income (expense), net $ 2,662  $ 97,983  (1) Incl