Archive · 23 Jul 2026
Alphabet Q2 Results Boost Cloud Growth
Alphabet, the company that owns Google, had a great second quarter with lots of growth, especially in their cloud services.
This is good news for big Indian tech companies like TCS, Infosys, Wipro, HCL Tech, and Tech Mahindra.
The cloud business grew a lot because more people are using AI.
Alphabet made a lot of money, but they also spent a lot on new things.
They think they will keep spending more in the future.
Google's ads and subscriptions also did well, with lots of growth in different parts of the world.
While things might be uncertain in the short term, this growth is good for Indian tech companies in the long run.
Alphabet's Q2 revenue grew 23% YoY to $120 billion, surpassing estimates.
Google Cloud revenue grew 82% YoY driven by strong AI demand.
Alphabet increased Q2 capex to $44.9 billion and raised FY26 capex guidance to $195-205 billion.
Google Services revenue expanded 15% YoY to $94.5 billion, driven by strong Search and Subscription growth.
Near-term margins are under pressure due to higher AI investments and FX headwinds.
- Who
- Alphabet (Google's parent company)
- What
- Reported Q2 results with strong cloud growth
- When
- June quarter
- Where
- Global
- Why
- Driven by AI demand and strategic investments
Optimistic View
Cautious View
Near-Term Outlook
Optimistic View
Strong cloud growth bodes well for Indian IT companies in the medium to long term.
Cautious View
Near-term environment remains uncertain for Indian IT companies.
- Q2 Revenue
- $120 billion (23% YoY growth in constant currency)
- Operating Margin
- 34% (up 160 basis points YoY)
- Google Cloud Revenue Growth
- 82% YoY
- Q2 Capex
- $44.9 billion
- FY26 Capex Guidance
- $195-205 billion
- Google Services Revenue
- $94.5 billion (15% YoY growth)
- Search Advertising Growth
- 17% YoY
- YouTube Ads Growth
- 13% YoY