ALPHABET $GOOGL Q2’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $119.8B (Est. $116.8B-$117.2B) 🟢; +24% YoY 🔹 Cloud: +82% YoY (Est. +63%-+67%) 🟢 🔹 Search & Other: +17% YoY (Est. +17%) 🟡 🔹 YouTube Ads: +13% YoY (Est. +10%) 🟢 🔹 CapEx: $44.9B (Est. $45.1B) 🟡 Google Services: 🔹 Revenue: $94.5B (Est. $94.3B) 🟡; +15% YoY 🔹 Operating Income: $39.5B 🔹 Google Advertising: $81.6B 🔹 Search & Other: $63.3B (Est. $63.3B-$63.5B) 🟡; +17% YoY 🔹 YouTube Ads: $11.1B (Est. $10.76B) 🟢; +13% YoY 🔹 Google Network: $7.3B 🔹 Subscriptions, Platforms & Devices: $12.9B; +15% YoY Google Cloud: 🔹 Revenue: $24.8B (Est. $22.2B-$22.8B) 🟢; +82% YoY 🔹 Operating Income: $8.8B Other Bets: 🔹 Revenue: $382M 🔹 Operating Loss: -$1.8B Alphabet-Level Activities: 🔹 Operating Loss: -$5.8B 🔸 Primarily reflects expenses related to shared AI research and development Other Metrics: 🔹 EPS: $9.11; includes $6.26 benefit from net unrealized gains on equity securities; +294% YoY 🔹 Operating Income: $40.8B (Est. $40.4B) 🟢; +30% YoY 🔹 Total TAC: $16.2B 🔹 Employees: 198,933 🔹 Gemini API Tokens/Minute: 22 billion 🔹 Gemini App MAUs: 950 million 🔹 Hedging Gains/Losses: $106M Geographic Revenue: 🔹 U.S. 🇺🇸: $60.8B; +32% YoY 🔹 EMEA 🇪🇺: $32.5B; +15% YoY 🔹 APAC: $19.3B; +17% YoY 🔹 Other Americas: $7.0B; +23% YoY Financials: 🔹 Operating Margin: 34% 🔹 Net Income: $112.1B; +298% YoY 🔹 Other Income, Net: $98.0B 🔹 Gain on Equity Securities, Net: $99.0B 🔹 Operating Cash Flow: $39.1B (Est. $46.04B) 🔴 🔹 Free Cash Flow: -$5.9B (Est. -$90M) 🔴 🔹 TTM Free Cash Flow: $53.3B 🔹 Cash & Marketable Securities: $242.5B 🔹 Long-Term Debt: $98.2B Capital Return: 🔹 Dividend: $0.22/share 🔹 Dividend Payable: September 14, 2026 🔹 Stock Repurchases: $0 CEO Sundar Pichai Commentary: 🔸 “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.” 🔸 “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.” 🔸 “These outstanding results show that our differentiated, full stack approach to AI is delivering real, measurable value for consumers, customers, and our partners globally.”