Alphabet Inc. Depositary Shares representing a 1/20th Interest in a Share of Series B Mandatory Convertible Preferred Stock
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsAlphabet Inc. is a collection of businesses led by Google, which operates the world's largest search engine, YouTube, cloud computing platform, and a portfolio of other bets, all driven by an AI-first strategy.
What they do
Alphabet organizes the world's information and makes it universally accessible and useful. Its largest segment, Google Services, includes Google Search, YouTube, subscriptions, platforms, and devices, while Google Cloud provides enterprise AI solutions and infrastructure. Other Bets encompasses non-Google moonshot businesses. The company has invested over $200 billion in R&D in the last five years, with a focus on AI.
Revenue drivers
- Google Services — Includes Google Search other ($63.3B in Q2 2026), YouTube ads ($11.1B), Google Network ($7.3B), and subscriptions/platforms/devices ($12.9B). Generated $94.5B in Q2 2026, representing 79% of total Alphabet revenue.
- Google Cloud — Comprises Google Cloud Platform (GCP) and Google Workspace. Revenue surged 82% year-over-year to $24.8B in Q2 2026, driven by demand for enterprise AI solutions, AI infrastructure, and core GCP services.
- Other Bets — Smaller non-Google businesses, such as Verily and Waymo. Generated $382M in Q2 2026, with an operating loss of $1.8B.
Recent performance
In Q2 2026, Alphabet consolidated revenues grew 24% year-over-year to $119.8 billion, or 23% in constant currency. Net income rose 298% to $112.1 billion, boosted by $98.0 billion in net unrealized gains on equity securities. Diluted EPS was $9.11. Operating income grew 30% to $40.8 billion, with operating margin expanding 2 percentage points to 34%. Google Cloud acceleration was notable at 82% revenue growth.
Strategy
Alphabet is an AI-first company since 2016, pursuing a full-stack approach spanning AI-optimized infrastructure (including custom TPUs like Ironwood), advanced research (Gemini 3 model), and products/platforms. All 15 of its half-billion-user products use Gemini models. The company centralizes AI R&D at the Alphabet level to serve all businesses, while maintaining segment independence. Management emphasizes building helpful AI responsibly, guided by AI principles.
Risks
- Advertising revenue concentration — Over 70% of total revenues come from online advertising, and reduced advertiser spending or loss of partners could harm the business.
- AI competition and disruption — The advertising industry is being reshaped by AI, and Alphabet must adapt competitively to new ad formats and strategies.
- Data privacy and ad blocking — Changes to privacy practices or ad-blocking technologies can impair personalized advertising and reduce effectiveness.
- Macroeconomic sensitivity — Advertiser demand correlates with economic conditions; adverse macroeconomic trends can cause revenue fluctuations.
Outlook
Management sees AI investments as redefining every part of the business, with strong demand for AI infrastructure and solutions. The Gemini app has 950 million monthly active users, and Gemini models process 22 billion API tokens per minute. Nearly 90% of the Fortune 100 use Gemini Enterprise. Management highlights momentum in Search query growth from AI features, security solutions, and YouTube engagement during major events like the FIFA World Cup.