Alphabet Beats Earnings as Gemini Reaches 950 Million Users

Alphabet reported another strong quarterly performance on Wednesday, extending its streak of double-digit revenue growth to 12 consecutive quarters as rapid adoption of its artificial intelligence services and continued strength in Google Cloud helped the company outperform Wall Street expectations.

The Google parent posted second-quarter revenue of $119.8 billion, a 24% increase from a year earlier, exceeding analysts’ forecast of $117 billion, according to FactSet. Alphabet also reported earnings of $9.11 per share, representing a 295% year-over-year increase and far surpassing the consensus estimate of $2.88 per share.

Google Cloud continued to be a major growth driver, with revenue climbing 82% to $24.8 billion, ahead of analysts’ expectations of $22.4 billion. Operating income from the cloud division more than tripled to $8.8 billion as demand for AI-related infrastructure and services continued to accelerate.

Alphabet CEO Sundar Pichai said the company’s Gemini AI platform now has 950 million monthly active users, an increase from the 750 million users reported during the fourth quarter of 2025. Pichai said Alphabet’s investments in artificial intelligence are “redefining what’s possible across every part of our business,” adding that the company’s “full-stack approach to AI delivering real, measurable value” for consumers.

Despite the stronger-than-expected results, Alphabet shares fell about 3% after the earnings announcement. However, Deepwater Asset Management analyst Gene Munster said the stock could recover in Thursday’s trading, describing Google Cloud’s revenue growth as the “most important number and it was a massive beat.”

Investors are also closely watching Alphabet’s spending on AI compared with other major technology companies. The company reported $44.9 billion in capital expenditures through the latest quarter, double the amount spent during the same period last year. Previous estimates indicated that Amazon, Alphabet, Microsoft and Meta could collectively invest as much as $750 billion this year to expand AI infrastructure and meet growing demand.

Alphabet also reported $97.8 billion in “other income,” a sharp increase from $2.2 billion a year ago. The company said the gain was primarily driven by its equity investments, including holdings in Anthropic and SpaceX.

Alphabet’s sustained revenue growth over the past three years reflects its aggressive investment in artificial intelligence. The company has committed hundreds of billions of dollars toward new data centers and AI projects, while also developing an in-house AI chip that Google engineers expect to be up to 10 times more energy-efficient than its predecessor.