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GOOGL Q2 FY2026 earnings: EPS beat by 217.4%, revenue beat by 2.8%

AI Infrastructure Desk · RegardingSemi Engine · Jul 22, 2026 · updated Jul 25

Alphabet Inc. reported Q2 FY2026. EPS came in at $9.11 against a $2.87 consensus, beat by 217.4%. Revenue was $119.8B versus $116.5B expected, beat by 2.8%. Gross margin was 61.6%, down 80 bps from last quarter.

§ Noticed on the call
  1. Qtrly google services revenue increased 15 percent to $94.5 billion.
    show quote
    “Google Services revenues increased 15% to $94.5 billion reflecting strong growth in search and subscriptions.”
  2. Qtrly google services operating income increased 20 percent to $39.5 billion.
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    “Google Services operating income increased 20% to $39.5 billion and operating margin was 41.8%.”
  3. Qtrly google services operating margin was 41.8 percent.
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    “Google Services operating income increased 20% to $39.5 billion and operating margin was 41.8%.”
  4. Qtrly google search and other advertising revenues increased 17 percent to $63.3 billion.
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    “Google Search and other advertising revenues increased by 17% to $63.3 billion with retail and finance driving the largest contributions.”
  5. Qtrly google cloud revenue increased 82 percent to $24.8 billion.
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    “Cloud revenue grew 82% powered by strong demand for AI infrastructure and AI solutions and Cloud backlog grew to $514 billion.”
§ From the call / model-read, verbatim-grounded
Sentiment
0.46
Net tone of the full call — above 0 positive, below 0 negative
Q&A Evasiveness
-1.9
Question-dodging vs this company's own baseline — spikes matter, not the level
Guidance Tone
0.53
Tone of the forward-guidance language
Novelty Share
93%
Language not seen in this company's prior calls
Demand & Orders “Subscription platforms and devices revenues increased 15% this quarter to $12.9 billion due to strong growth in both YouTube subscriptions, particularly YouTube Music and Premium and Google One, which was driven by demand for AI plans.”
Demand & Orders “Cloud revenue grew 82% powered by strong demand for AI infrastructure and AI solutions and Cloud backlog grew to $514 billion.”

4 more flagged statements from this call are in the Pro read.

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the fully annotated transcript →

§ The quarter in numbers
Metric Actual Consensus Surprise
EPS $9.11 $2.87 beat by 217.4%
Revenue $119.8B $116.5B beat by 2.8%
Line This quarter QoQ YoY
Revenue $119.8B +9.0% +24.2%
Gross profit $73.9B +7.6% +28.7%
Operating income $40.8B +2.7% +30.4%
Net income $112.2B +79.3% +297.9%
Diluted EPS $9.11 +78.3% +294.4%
Gross margin: 61.6%.
§ The trend

Revenue is up 24.2% from the same quarter last year. Gross margin sits at 61.6%, 80 bps off its 8-quarter high.

§ How it stacks up Pro

This section is part of the Pro report for GOOGL.

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§ Go deeper on GOOGL
The annotated call — full transcript, ML highlights → Everything on GOOGL → Who owns it (13F) → Insider tape →
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