Second-quarter revenue rose 23%, ignoring currency moves, to $119.8bn ($116.9bn expected). The core advertising business, which includes Google Search and YouTube, saw revenue rise by 15% to $81.6bn. Google Cloud revenue increased by 82% to $24.8bn.
Operating income rose 30% to $40.8bn ($40.4bn expected), supported by strong growth across Google Services and a significant improvement in Google Cloud profitability.
Free cash flow turned negative at $5.9bn, as higher capital expenditure more than offset stronger operating cash generation. Net cash, including leases, was $129.7bn at quarter-end, boosted by the receipt of $49.6bn for the issue of new shares.
Capital expenditure guidance for 2026 has been increased to between $195-205bn (previously $180-190bn).
The shares were down 2.9% in after-hours trading.
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Alphabet key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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