Alphabet Reports Record Q2 Earnings Driven by AI Product Adoption

Google-parent Alphabet announced its second quarter revenue on July 22. The tech giant reported one of the strongest quarters in the company's history, earning $119.8 billion, up from $96.4 billion in the year-ago period. The company not only posted record financial results but also shared several milestones showing how quickly its AI products are being adopted by businesses, developers and consumers. From Google Cloud's explosive growth to nearly a billion users on the Gemini app, the numbers highlight how AI has become central to Google's business. Here are the 10 biggest figures from Alphabet's latest quarterly update and what they reveal about the company's historical milestone.

Google-parent Alphabet's total revenue grew 24% year over year

Alphabet said its revenue grew 24% year over year, marking one of its strongest quarterly performances in recent years. The company credited AI for driving growth across its businesses, including Search, YouTube and Google Cloud. "Consolidated Alphabet revenues increased 24%, or 23% in constant currency, to $119.8 billion, reflecting strong performance across the business and our 12th consecutive quarter of double-digit revenue growth," Google said in a filing with US Securities and Exchange Commission (SEC). Announcing the Q2 earnings, Google CEO Sundar Pichai said: "We have exciting momentum. Alphabet revenue grew 24% year-over-year. Our AI investments are redefining what's possible across every part of our business".

Google Cloud revenue jumps 82%

One of the biggest highlights was Google Cloud. The tech giant's cloud business recorded 82% year-over-year revenue growth, as companies increasingly turned to Google's AI infrastructure, Gemini models and enterprise AI tools. Pichai credited the growth to rapid adoption of the Gemini Enterprise platform, saying nearly 90% of Fortune 100 companies now use it.

Google Services revenues increases 15%

In its SEC filing, Google revealed that its Services revenue jumped to $94.5 billion during the second quarter of 2026. The rise was led by 17% growth in Google Search & other, 15% in Google subscriptions, platforms, and devices, and 13% in YouTube ads. Customers include PepsiCo, Intel, HSBC, Bell Canada, Macy's and SIGNAL IDUNA, among others. The company said businesses are using Gemini to automate work, improve cybersecurity, analyse data and build AI agents.

Google Cloud backlog reaches $514 billion

Google also reported that its Cloud backlog climbed to $514 billion. For those unaware, the backlog represents future business that has already been contracted but has not yet been delivered, giving investors visibility into long-term revenue. That backlog is more than triple Google Cloud's annual revenue pace, giving Alphabet years of already-booked business as a cushion even if new deal-signing slows.

AI is now touching every major Google product

Three numbers show how deep that reach goes: Gemini app users have hit 950 million monthly actives, Google Search's AI Mode has crossed 1 billion monthly users, and more than 140 million people used YouTube's new Ask YouTube feature in June alone.

Gemini app reaches 950 million active users

Google's Gemini app has grown to 950 million monthly active users, making it one of the world's largest AI consumer products. The company also said daily active users have tripled over the past year as it introduced new AI features such as Daily Brief and Gemini Spark. "Users love new agentic features like Daily Brief and our personalized agent, Gemini Spark, which is now available in the U.S. and internationally," Pichai said.

Google Search AI Mode crosses 1 billion monthly users

Google's AI-powered Search experience is also expanding rapidly. According to the company, AI Mode – which was introduced in October last year – has more than 1 billion monthly active users worldwide. Google said AI Mode and AI Overviews are increasing the number of search queries while continuing to send billions of clicks to websites every week. "AI Mode is driving an incremental increase in Search queries overall, and we're now sending billions of clicks to websites every week through AI features in Search," Sundar Pichai said.

YouTube advertising revenue jumps 13%

Google's YouTube advertising revenue rose 13% to about $11.06 billion. That's up from $9.8 billion in the year-ago period and about $9.9 billion last quarter. The company said more than 1.7 billion unique viewers around the world watched FIFA World Cup 2026-related videos on the platform. Pichai said that the company is "bringing the power of conversational AI directly into the YouTube experience. Ask YouTube uses our Gemini models to let people ask complex questions about individual videos, get quick takeaways, and jump straight to moments in those videos". According to Google, more than 140 million users interacted with Ask YouTube during June 2026.

Google's AI processes 22 billion tokens every minute

Demand from developers and enterprise customers continues to rise. Google said its AI model APIs are now processing around 22 billion tokens every minute, up from 16 billion tokens per minute just one quarter earlier — a 37% jump that signals enterprise and developer demand for Google's AI models is accelerating, not just growing steadily. "Additionally this quarter, we launched Omni. It allows users to create anything from any input, starting with video. Since launching at I/O in May, there's been a 40% increase in daily active users creating videos on the Gemini app," the company stated.

More than 9 million developers use Google's AI models

Google revealed that more than 9 million developers now build applications every month using its AI models through APIs and developer tools. The company recently launched Gemini 3.6 Flash, Gemini 3.5 Flash-Lite and Gemini 3.5 Flash Cyber, while Gemini 4 is already in training. "Our Gemma family of open models small enough to run on local devices are hugely popular — these models have been downloaded over nine hundred million times. And our latest Gemma 4 models have been downloaded over 300 million times since launching in April," Pichai revealed. With three new Flash-tier Gemini models shipped in a single quarter and Gemini 4 already in training, Google is expanding its AI lineup faster than it's replacing older versions — a sign it's racing to cover every price and performance tier before rivals do.

Google's other bets

Sundar Pichai revealed that the company's Tesla-rival Waymo introduced its newest vehicle, Ojai, to public riders. This is the first vehicle powered by the sixth-generation Waymo Driver and will welcome more riders in the coming months. He further stated that Google's drone delivery platform Wing has completed more than 1 million home deliveries. In health and drug discovery, Isomorphic Labs raised over $2 billion to power its AI drug design engine, scale globally, and advance its drug candidate pipeline, he stated.