Alphabet Earnings Report: Google Parent Posts Record USD 112.1 Billion Quarterly Profit

Google parent Alphabet has become the first company in the world to report more than USD 100 billion in quarterly profit, setting a new corporate record after its second quarter earnings, released on July 22, showed a net income of USD 112.1 billion, nearly four times higher than a year earlier, boosted heavily by investment gains from Anthropic and SpaceX.

Revenue And Profit Surge

Alphabet's revenue rose 24 per cent year over year to USD 119.8 billion for the April to June quarter, up from USD 96.4 billion in the same period last year. Operating income increased 30 per cent to USD 40.8 billion, with operating margin expanding to 34 per cent.

Net income available to common stockholders surged 298 per cent to $112.1 billion, up from $28.2 billion a year earlier, with diluted earnings per share reaching $9.11. According to Fortune, the figure represents more profit in three months than 459 Fortune 500 companies generate in total annual revenue. Google Parent Alphabet Surpasses USD 400 Billion Annual Revenue Milestone As Gemini AI Hits 750 Million Users; Elon Musk Congratulates.

Google Cloud revenue jumped 82 per cent to $24.77 billion, driven by demand for AI infrastructure and enterprise solutions. Google Services revenue grew 15 per cent to $94.5 billion, with Search and other advertising revenue up 17 per cent to $63.3 billion and YouTube ad revenue rising to $11.06 billion.

USD 99 Billion 'Other Income' Behind The Record

A footnote in Alphabet's earnings release showed that a large share of the record profit came from $99 billion in "other income," which included unrealised and realised gains from the company's investment portfolio. These gains added $98 billion to net income after taxes. Meta Projected To Surpass Google in Global Digital Ad Revenue by 2026.

Much of this came from Alphabet's stakes in Anthropic and Elon Musk owned SpaceX, both of which saw sharp valuation increases during the quarter. Alphabet invested $300 million in Anthropic in 2023, an investment that has since grown significantly. The two companies also have a cloud partnership under which Anthropic buys large amounts of computing capacity from Google Cloud, supporting the cloud business's rapid growth.

Alphabet also owns a roughly 6 per cent stake in SpaceX, which went public last month at a valuation of $1.77 trillion, contributing further paper gains to the company's bottom line.

Pichai Credits AI Strategy

Google CEO Sundar Pichai said the results showed that the company's "full stack approach to AI is delivering real, measurable value." He added that Gemini Enterprise is now used by nearly 90 per cent of Fortune 100 companies, and that Gemini models process 22 billion API tokens per minute, with the Gemini app reaching 950 million monthly active users.

The company raised $49.6 billion by issuing stock in June and brought in $20.3 billion from senior unsecured notes during the quarter to support its AI infrastructure expansion. Capital expenditure for the quarter totalled $44.9 billion, and Alphabet has raised its 2026 capex guidance to between $195 billion and $205 billion.

Shares Fall Despite Record Earnings

Despite the record profit, Alphabet shares fell about 3 per cent in after hours trading. Investors remained concerned over the company's rising spending on AI infrastructure, negative free cash flow of $5.9 billion for the quarter, and increasing competition for its Gemini family of AI models.

(The above story first appeared on LatestLY on Jul 23, 2026 10:57 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).