Google Cloud Revenue Jumps 82% to $24.8 Billion in Second Quarter
Key Facts
Google Cloud revenue jumped 82% year over year to $24.8 billion in the second quarter of 2026, ended June 30, according to Alphabet’s filing with the U.S. Securities and Exchange Commission. The company said growth accelerated materially, driven by demand for enterprise AI solutions and related infrastructure, alongside core cloud platform services. The results came ahead of the third-quarter earnings announcement, which had not been released by October 25. Gemini app monthly active users reached about 950 million in the second quarter, according to the chief executive. The figures show simultaneous expansion in the company’s cloud services and AI products.
Cloud revenue rose from $13.624 billion in the second quarter of 2025 to $24.768 billion in the same period of 2026, according to the results tables. The segment’s operating income was $8.814 billion, compared with $2.826 billion a year earlier, reflecting an improved contribution from the business alongside sales growth. Search remained the largest revenue source among the activities cited, with Google Search & other revenue of $63.271 billion, up 17% year over year from $54.190 billion. Alphabet said search revenue benefited from growth in queries, adding, "Our popular AI features are driving growth in Search queries." Cloud expansion thus coincided with continued growth in the core search business.
Alphabet’s consolidated revenue was $119.8 billion in the second quarter, up 24% year over year, or 23% excluding the impact of foreign exchange movements. The consolidated operating margin widened to 34%, an increase of two percentage points from the same period a year earlier. On the use of AI products by businesses, the chief executive said nearly 90% of Fortune 100 companies use Gemini Enterprise. He added that Gemini models process 22 billion tokens through the API every minute. The company presented these indicators alongside second-quarter results and search and cloud revenue figures.
The report showed a large balance of remaining performance obligations, with the portion related to Google Cloud at about $513.9 billion on June 30, 2026. Alphabet said it expects to recognize slightly more than half of total backlog revenue over the 24 months following that date. This balance represents contractual obligations tied to future revenue, with the timing of recognition spread over the period specified by the company. These obligations place demand for cloud services at the center of the business outlook. Their conversion into revenue remains tied to the delivery of services and customer usage.
Cloud growth coincided with heavy capital spending on technology infrastructure. Alphabet’s capital expenditures totaled $44.9 billion in the three months ended June 30, compared with operating cash flow of $39.1 billion in the same period. For the first half, capital expenditures reached $80.6 billion, compared with $39.6 billion in the first half of 2025. The company said spending primarily reflects investment in technical infrastructure, including servers, network equipment and data centers. It also forecast a significant increase in these investments in 2026 compared with 2025.
In trading on October 23, 2026, Alphabet Class A shares, listed under the ticker GOOGL, closed at $320.21, according to EL7 data. The trading data available in the story did not include a daily range for the stock or closing prices for other companies’ shares. The operating figures in the company’s results relate to the second quarter, while the share price is from the October session. This comes as the company moves to continue investing in technology assets supporting cloud and AI. Alphabet expects to recognize slightly more than half of its remaining performance obligation backlog over the 24 months following June 30, 2026.