Alphabet Q2: Gemini used by 90% of Fortune 100 companies, says Sundar Pichai, feels AI investments ‘redefining’ business
Alphabet Q2 results: Google’s parent company Alphabet reported consolidated revenue of $119.8 billion in the second quarter of FY27 compared to $96.43 billion in the previous year, up 24% from the previous year, ANI reported, citing the tech giant’s filing with stock exchanges.
Alphabet and Google CEO Sundar Pichai said in a statement that the company’s Cloud business unit achieved strong growth of 82% in the quarter, driven by strong demand for artificial intelligence (AI) and increased adoption of Gemini. He added that Gemini Enterprise is now used by close to 90% of Fortune 100 companies.
The performance reflects strong performance across the business and our 12th consecutive quarter of double-digit revenue growth, the statement said. On a consolidated level, Alphabet’s operating income increased 30%, while operating margin increased two percentage points to 34%, and other income reflected a net gain of $98 billion, primarily due to unrealized net gains on the company’s equity investments.
Total sales, excluding payments to partners, were $103.6 billion in the second quarter, beating the average analyst estimate of $101.07 billion. According to the Bloomberg report, net income was $9.11 per share, well above Wall Street’s estimates.
Commenting on the growth, Pichai said, “Our investments in AI are redefining what is possible in every aspect of our business.” he said.
Google Services revenue increased by 15%
- In the statement, it was stated that Google Services revenue increased by 15% to $94.5 billion.
- This was supported by 17% growth in Google Search and other businesses.
- Additionally, a 15% increase in subscriptions, platforms and devices,
- And 13% growth in YouTube ad revenue.
Google Cloud’s profits increased by 82%, Gemini’s growth
Google Cloud showed significant growth, with revenue rising 82% to $24.8 billion. According to the ANI report, the growth was driven by increasing demand for Google Cloud Platform (GCP), primarily for enterprise AI solutions and infrastructure, as well as continued growth in core GCP services.
Google’s model APIs process “22 billion tokens per minute (up from 16 billion last quarter) thanks to our very powerful Flash models.”
“We are also seeing massive adoption of Gemini Enterprise, used by 90% of the Fortune 100, and strong demand for our security solutions,” he said.
In a separate development, Alphabet had previously increased the size of its stock offerings to $84.75 billion to expand its artificial intelligence infrastructure and computing capacity.
Verily and Waymo failed to meet predictions
According to a Bloomberg report, Alphabet’s Other Bets division, which is home to long-term ventures such as life sciences company Verily and autonomous vehicle unit Waymo, earned $382 million in revenue, below estimates.
The report also noted that Alphabet is trying to give some of its other experimental ventures more independence as independent companies while continuing to pour resources into Waymo.
He also noted that the giant’s investment portfolio also provides shares in artificial intelligence rival Anthropic and Elon Musk’s rocket company SpaceX. It was stated that the gain in value of Alphabet’s investments reached approximately $100 billion in the quarter and net income increased rapidly.
According to the report, Alphabet shares fell approximately 0.5% in after-hours trading on Wednesday, July 22, 2026. The stock closed at $342.09 per share in New York.
(With input from institutions)
