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Alphabet Inc. (Class A) (GOOGL) · Q2 2026 results and valuation

Share price: $293.45 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter

Net income up 79.3% on the previous quarter. Tone in line with last period.

Only a basic analysis is available for this company at the moment.

1 · Numbers

+79.3%

Net income vs Q1 2026

Outlook given

Net income 112.19B vs 62.58B

Revenue +9.0%

Against the same quarter last year (Q2 2025) it is +297.9%, so it is not just seasonal.

Why Net income rose primarily due to unrealized gains in OI&E.

2 · How management spoke

Unchanged

Language tone vs last period

Language: upbeat — about as upbeat as in Q1 2026.

3 · What stood out

Key theme

Google Services revenue hit $95 billion, up 15% year-over-year, driven by 17% growth in search.

Valuation

Is Alphabet Inc. (Class A) undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 16.1% growth a year (3-year revenue growth), the model's fair value is $240.11 a share — the stock trades 22% above it. Today's price assumes 19.0% growth a year.

Current price

$293.45

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+19.0% for 10 yrs

Fair value / share

$240.11

Buy below

$180.08

Price vs fair value

Overvalued 22%

Price vs buy-below price

Overvalued 63%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    Alphabet's momentum starts with search where people are adopting one seamless search experience across AI overviews and AI mode.

    Source quote
    “Our momentum starts with search where people are adopting one seamless search experience across AI overviews and AI mode. Our AI investments are redefining what's possible across every part of our business. We saw 17% revenue growth in search and other and YouTube ads grew 13%.”
  2. Guidance

    Most backlog comes from typical Google Cloud contracts, with just over half of the total expected to be recognized.

    Source quote
    “The majority of the backlog is related to typical GCP contracts for a broad mix of customers, and we expect to recognize just over 50% of the total...”
  3. Figure

    Alphabet revenue grew 24% year-over-year.

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Overall language Upbeat (was upbeat)

Upbeat — about as upbeat as in Q1 2026.

Sentences that drove the tone
“But overall, if you think about the cloud margins, obviously, a really fantastic expansion of margin to 35.6% this quarter, outstanding strong operational discipline across the business and leveraging growth...”
“Cloud revenue grew 82% powered by strong demand for AI infrastructure and AI solutions and Cloud backlog grew to $514 billion.”
“Google Services revenues increased 15% to $94.5 billion reflecting strong growth in search and subscriptions.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric Q2 2026period end 2026-06-30 Q1 2026period end 2026-03-31 Change Q2 2025 YoY
Revenue 119.80B 109.90B +9.0% 96.43B +24.2%
Operating income 40.77B 39.70B +2.7% 31.27B +30.4%
Net income 112.19B 62.58B +79.3% 28.20B +297.9%
EPS 9.11 5.11 +78.3% 2.31 +294.4%
P/E today 17.4 17.9 21.9 −4.0 18.8 −0.9

Topics

Most discussed now

  • YouTube advertising revenues grew 13%, driven by direct response and brand.
  • Operating income increased 30% to $40.8 billion and operating margin was 34%.
  • New Alphabet has started its most ambitious pretraining run yet for Gemini 4 and are excited by the progress it is...
  • New The core engine of Alphabet's search ads relies on a dual prediction, delivering immediate utility for the user while maximizing...
  • Cloud revenue grew 82% powered by strong demand for AI infrastructure and AI solutions and Cloud backlog grew to $514...

Faded since Q1 2026

  • Dropped Alphabet is carefully designing space and agenetic workflows for users to really see valuable components of their shopping journey beyond…
  • Fading It's the foundation of Alphabet's full stack approach to AI, driving customer growth and product adoption.
  • Fading People love Alphabet's AI experiences like AI Mode and AI overviews and they're coming back to search more.
  • Fading Gemini Enterprise is seeing tremendous momentum with 40% growth quarter-over-quarter in paid monthly active users.

Latest announcements

Official filings, newest first.

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