Alphabet, Google’s parent company, has released its financial results for the second quarter, and as expected, they were good, very good. The company has now posted many quarters of upward momentum, and overall that has been driven by the remarkable growth in usage of its cloud business services.
Google is living in the cloud… and it does not look like it will be coming down anytime soon.
Year over year, the company’s revenue increased 24%, reaching $119.796 billion, while profit grew 298% (!!), rising from $28.196 billion in the second quarter of 2025 to $112.107 billion recorded for the period ended last June 30.
In any case, and despite how extraordinary it is to have nearly quadrupled its profit in just one year, it is worth noting that most of it did not come directly from its operating business. The company itself explains that the result was driven primarily by $98 billion in accounting gains derived from the revaluation of its stakes in publicly traded companies, a one-off effect that pushed net profit far above the underlying growth of the business.
Now, let us move on to the breakdown of its revenue figures.
Search remains the main engine of Google’s revenue, growing 17% to $63.271 billion. At present, 52% of the company’s revenue comes from its search business.
The company’s CEO, Sundar Pichai, said he is proud of how this area has evolved following successive rounds of AI-based innovation related to AI Overviews and AI Mode: “Since we expanded AI Mode globally last October, we have surpassed 1 billion monthly active users. And, like AI Overviews, AI Mode is driving a gradual increase in Search queries overall, and we are now sending billions of clicks to websites every week through AI features in Search.”
However, the fastest-growing area continues to be cloud services. Google Cloud revenue rose 82%, driven by strong demand for AI infrastructure and solutions. That jump also carried over into profitability: Google Cloud’s operating profit increased from $2.826 billion to $8.814 billion, more than triple the level of a year earlier.
What is more, Pichai himself explained that its cloud backlog has reached $514 billion, making the company’s outlook even more optimistic going forward. Right now, 20.6% of Google’s revenue already comes from this division.
“One of the pillars of our growth lies in the rapid adoption of our Gemini Enterprise platform. It stands out for its intuitive tools to build agents and automate processes, its connectivity with enterprise systems, cost management, and governance tools. In the second quarter, Agent Development Kit, our framework for building and deploying enterprise AI agents, reached nearly 70 million downloads,” Pichai noted, explaining that close to 90% of Fortune 100 companies are already using Gemini Enterprise.
Image: ChatGPT
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