Alphabet achieved record revenue of $119.8 billion thanks to the booming success of Google Cloud and Gemini.
Alphabet achieved record second-quarter revenue of $119.8 billion thanks to an 82% increase in its Google Cloud segment. Meanwhile, its Gemini assistant is nearing 1 billion monthly users.
Alphabet, Google's parent company, just announced its second-quarter financial results, reporting record revenue of $119.8 billion, a 24% increase compared to the same period in 2025. This better-than-expected performance was driven by the booming Google Cloud computing and search services, along with the rapid growth of its Gemini artificial intelligence assistant.
Google Cloud is booming, and there's pressure to expand AI infrastructure.
Within the group's business areas, Google Cloud continues to assert its role as the main growth driver. Although the search segment still contributes the largest share of revenue, cloud services recorded exceptional growth with revenue reaching $24.8 billion, an 82% increase compared to the same period last year.
In addition, the value of signed contracts that have not yet been recognized as revenue (backlog) for Google Cloud has reached $514 billion. This reflects the strong wave of investment and application of artificial intelligence from businesses worldwide.
To meet the growing demand for AI infrastructure, which still far exceeds supply, Alphabet has decided to increase its 2026 Capital Expenditure (CapEx) plan to approximately $195-205 billion, higher than the previously projected $190 billion. Chief Financial Officer Anat Ashkenazi stated that about 60% of the infrastructure investment will be allocated to AI server systems, with the remainder going towards data centers and networking equipment. In addition to building its own infrastructure, Google is also increasing its outsourcing of external infrastructure to meet the growing computing demands.
Gemini accelerates its approach to ChatGPT and addresses the cost optimization challenge.
In the end-user product segment, the Gemini AI assistant continues to record impressive user growth. The platform currently has approximately 950 million monthly active users (MAU), a significant increase from 650 million in October 2025 and 750 million at the beginning of this year.
CEO Sundar Pichai added that Gemini's daily active users have tripled in just one year. With its current scale, Gemini is significantly closing the gap with OpenAI's ChatGPT, which currently boasts around 1 billion MAU.
Alongside expanding its customer base, Google is focusing on optimizing the operating costs of its AI models. The introduction of Gemini 3.6 Flash improves programming efficiency while consuming fewer computing resources, thereby reducing deployment costs for developers and easing infrastructure pressure on the corporation.
