Google reported its earnings today, its Q2 2026 earnings report showed search ad revenues up by 14.5% at $81.6 billion and overall revenue was up 24% at $119.8 billion. As you know, I specifically like to dig in as best as I can on the search ad revenue side to see how Google Ads has performed.
Google's ad revenue was up again year-over-year, with an increase of 14.5%, and overall revenue is also up 24%. This is Google's biggest quarter ever in terms of overall revenue. Google's search revenue grew 17% to $63.3 billion, up from about $54.2 billion a year ago, which is roughly in-line with a $63.4 billion estimate from StreetAccount. Sundar Pichai said, "Our momentum starts with Search, where people are adopting one seamless search experience across AI Overviews and AI Mode. We saw 17% revenue growth in Search and Other. And YouTube Ads grew 13%."
If you want to compare Q2 2026 to Q1 2026, you will see ad revenue was up 5.6%, overall revenue was down 9% and profit was up 2.7%.
Here is a chart plotting Google's overall revenue, then ad revenue and then profit over the past several quarters:
Here is the snippet from the earnings report:
Sundar Pichai, Google's CEO, said:
Our AI investments are redefining what’s possible across every part of our business. Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions. It’s great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it.We have exciting momentum across the board. Our popular AI features are driving Search query growth. Gemini models now process 22 billion API tokens per minute and the Gemini App has 950 million monthly active users. We are seeing strong demand for our security solutions, and our new Gemini 3.5 Flash Cyber delivers highly cost efficient performance at the frontier. And month over month, people turn to YouTube for major world events, with over 1.7 billion unique viewers watching World Cup-related videos during the FIFA World Cup 2026TM.
He also said specific to Google Search:
Starting with Search. AI continues to drive an expansionary moment, with new experiences resonating with users and driving growth in queries. As a big football fan, I was particularly excited to see Search usage hit an all-time high during the World Cup this year. This really highlights how much people turn to Google in moments that matter.We continue to make Search more helpful and intuitive. We recently brought together AI Overviews and AI Mode into one seamless Search experience that combines our frontier capabilities with the best of the web. And we’re continuing to incorporate more frontier capabilities into Search with agents, personal intelligence, and notebooks.
Our AI-powered features are driving increased Search usage. Since expanding AI Mode globally last October, we’ve surpassed 1 billion monthly active users. And just like AI Overviews, 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.
As we serve more of these queries, we’ve continued to drive efficiencies. Thanks to our engineering and hardware optimizations, this quarter we reduced the cost of AI Mode responses to its lowest level since launch, even as we’ve brought more advanced AI capabilities.
Highlights from Google earnings:
- 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 Services revenues increased 15% to $94.5 billion, led by 17% growth in Google Search & other, 15% in Google subscriptions, platforms, and devices, and 13% in YouTube ads.
- Google Cloud saw a meaningful acceleration in growth as revenues increased 82% to $24.8 billion, led by an increase in Google Cloud Platform (GCP) across enterprise AI Solutions and enterprise AI Infrastructure, as well as core GCP services.
- Consolidated Alphabet operating income increased 30% and operating margin expanded by 2 percentage points to 34%.
- Other income reflected a net gain of $98.0 billion, primarily the result of net unrealized gains on our equity securities.
- Net income available to common stockholders increased 298% and EPS increased 294% to $9.11.
Read my full remarks here: https://t.co/CkGgVIZrcU
— Sundar Pichai (@sundarpichai) July 22, 2026
Forum discussion at X.
