Google's parent company Alphabet reported that its net profit quadrupled to $112 billion (£84 billion) in the second quarter of 2026, largely driven by heavy investments in artificial intelligence. CEO Sundar Pichai attributed the strong performance to growth in its AI model Gemini and AI-powered search queries, as well as YouTube, which attracted over 1.7 billion unique viewers for 2026 FIFA World Cup-related content.
Revenue and Cloud Growth
The company recorded total revenue of more than $119 billion between April and June, a 24% increase compared to the same period last year. Its cloud business generated over $24 billion in the quarter. Net profit soared to over $112 billion, boosted by gains from AI-related investments in SpaceX and Anthropic, valued at about $99 billion, contributing to $77 billion in overall profit.
SpaceX IPO Impact
The profit boost was also aided by SpaceX's public listing earlier this month, though the Elon Musk-led company's stock has fallen below its IPO price of $135 per share, trading at just over $115 per share.
Gemini vs. ChatGPT
Google's Gemini app now has 950 million monthly active users, nearing OpenAI's ChatGPT, which reached 1 billion monthly active users in June, according to reports. 'Our AI investments are redefining what's possible across every part of our business,' Pichai said.
Capital Expenditure and Future Plans
Alphabet spent nearly $45 billion in the quarter, with 'the vast majority' directed toward AI investments, CFO Anat Ashkenazi said during an analyst call. The company raised its full-year capital expenditure estimate to as much as $205 billion, up from $190 billion last quarter, 'primarily due to an acceleration in the delivery of capacity to meet growing demand,' Ashkenazi added. 'We continue to expect our capex to increase significantly in 2027, and will provide more details at a later date.'
