Alphabet reported a significant surge in its cloud division during the second quarter of 2026. Google Cloud revenue reached $24.8 billion, marking an 82% increase year-over-year. This growth accelerated from 63% in the first quarter of 2026.
Profitability in the cloud segment also improved, with operating income more than tripling to $8.8 billion and margins expanding to 35.6%. The company holds a backlog of $514 billion in contracted revenue yet to be recognized.
The Gemini application reached 950 million monthly active users, up from approximately 450 million a year prior. Additionally, nearly 90% of Fortune 100 companies now utilize Gemini Enterprise, while developers process 22 billion API tokens per minute.
Total revenue for Alphabet hit $119.8 billion, a 24% increase compared to the previous year. To support AI infrastructure, the company doubled its capital expenditures to $44.9 billion in the second quarter.
