Google Cloud revenue grew 82% year over year to $24.8 billion in Q2 2026, and the Gemini app reached 950 million monthly active users. Alphabet's capital expenditures doubled to $44.9 billion in the same quarter.
Google Cloud grew revenue 82% year over year to $24.8 billion in Q2 2026. The Gemini app also reached 950 million monthly active users, up from approximately 450 million a year earlier.
Cloud growth accelerates
Cloud revenue grew 63% in Q1 2026, then the growth rate jumped to 82% one quarter later. Google Cloud's operating income more than tripled to $8.8 billion. Its operating margin expanded to 35.6%.
Alphabet also reported $514 billion in contracted revenue not yet recognized. Company-wide, total revenue reached $119.8 billion, up 24% year over year.
The Motley Fool's Brett Schafer put the Cloud figure in context: it was up from $13.6 billion in the same quarter a year ago, adding $11.2 billion in quarterly revenue. Google Search generated $63.3 billion, up 17% year over year, a $9.1 billion increase. Schafer argues that Cloud is therefore now more important than Search to Alphabet's revenue growth story.
Gemini usage climbs
The Gemini app sat at around 750 million monthly active users in Q4 2025. Its daily active users tripled year over year.
Business adoption is rising too. Nearly 90% of Fortune 100 companies are using Gemini Enterprise, and Google's models are processing 22 billion API tokens per minute.
Spending doubles
The buildout is expensive. Alphabet's capital expenditures doubled year over year to $44.9 billion in Q2, more than Google Cloud's entire quarterly revenue.
CEO Sundar Pichai framed the spending as necessary to build out AI infrastructure and keep up with customer demand. He also said the company would forgo some short-term Cloud revenue to prioritize compute for its advanced models.
Search has held up so far: both sources report that Google Search revenue reached an all-time high last quarter. Schafer still writes that he thinks Search revenue could eventually hit a wall as chatbot usage grows.
Sources: Crypto Briefing, Fool
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