Results

Revenue was $119.8 billion in Q2 FY2026, compared with $96.4 billion in Q2 FY2025. Gross profit was $73.9 billion in Q2 FY2026, versus $57.4 billion in Q2 FY2025, while operating income was $40.8 billion, compared with $31.3 billion. Net income was $112.2 billion in Q2 FY2026, versus $28.2 billion a year earlier, and diluted EPS was $9.11, compared with $2.31. The company attributed higher other income and expense, net, primarily to unrealized gains in its equity securities portfolio.

Segments and drivers

The company said Q2 FY2026 revenue growth was primarily driven by higher Google Services revenue and Google Cloud revenue. Google Search & other revenue increased, which the company attributed to higher search queries from mobile adoption and usage, growth in advertiser spending, and improvements to ad formats and delivery. YouTube ads revenue increased, driven by direct-response and brand advertising products that benefited from increased advertiser spending. Google Network revenue decreased, primarily because of lower AdSense revenue, partly offset by higher AdMob revenue. Google Cloud growth was driven largely by infrastructure and platform services, with TPU-system sales beginning to be recognized in the second quarter of 2026.

Margins and costs

Gross margin was 61.6% in Q2 FY2026, compared with 59.5% in Q2 FY2025, a change of 2.1 percentage points. Operating margin was 34.0% in Q2 FY2026, compared with 32.4% a year earlier, a change of 1.6 percentage points. Cost of revenue increased $6.9 billion year over year in Q2 FY2026; the company cited higher other cost of revenues and traffic acquisition costs. The release attributed higher other cost of revenues primarily to depreciation, inventory and other costs, YouTube content acquisition costs, and technical-infrastructure operations. Research and development expense increased $4.4 billion year over year, primarily due to employee compensation and depreciation.

Cash and balance sheet

Operating cash flow was $39.1 billion in Q2 FY2026, compared with $27.7 billion in Q2 FY2025. Cash and short-term investments were $242.5 billion in Q2 FY2026, compared with $95.1 billion in Q2 FY2025. The company said net cash provided by operating activities increased over the first six months of 2026 because of higher cash received from customers, partly offset by higher cash payments for cost of revenues and operating expenses. It also said that net cash used in investing activities increased, citing property and equipment purchases, marketable-securities purchases, and acquisition payments. In April 2026, the board declared a quarterly cash dividend on common stock.