Alphabet Q2: Gemini used by 90% of Fortune 100 companies, says Sundar Pichai, feels AI investments ‘redefining’ business
Alphabet revenue jumps 24% YoY as Google Cloud sees 82% growth in Q2FY27. This comes amid strong demand for AI as Gemini gains has been adopted at nearly 90% of Fortune 100 companies, says CEO Sundar Pichai.
Alphabet Q2 results: Google's parent company Alphabet has reported consolidated revenue of $119.8 billion for Q2FY27, up from $96.43 billion the previous year, an increase of 24% year-on-year (YoY), ANI reported, citing the tech giant's filing with the exchanges.
In its statement, Alphabet and Google CEO Sundar Pichai, said that the company's Cloud business pulled in a robust 82% growth for the quarter, on the back of strong demand for artificial intelligence (AI) and increased adoption of Gemini. He added that Gemini Enterprise is now used by close to 90% of Fortune 100 companies.
The release noted that the performance reflects strong performance across the business and our 12th consecutive quarter of double-digit revenue growth. At the consolidated level, Alphabet's operating income increased 30%, while its operating margin expanded by two percentage points to 34% and other income reflected a net gain of $98 billion, primarily due to net unrealised gains on the company's equity investments.
Total sales, excluding partner payouts, were $103.6 billion in the second quarter, surpassing the $101.07 billion average analyst estimate. Net income was $9.11 a share, well above Wall Street’s forecasts, as per a Bloomberg report.
Commenting on the growth, Pichai said, “Our AI investments are redefining what's possible across every part of our business.”
Google Services revenue up 15%
- The statement noted that Google Services revenue rose 15% to $94.5 billion.
- It was supported by 17% growth in Google Search and other businesses.
- Further, 15% increase in subscriptions, platforms and devices,
- And 13% growth in YouTube advertising revenue.
Google Cloud profit surges 82%, Gemini growth
Google Cloud showed significant growth as revenue surged 82% to $24.8 billion. As per the ANI report, growth was driven by higher demand for Google Cloud Platform (GCP), particularly enterprise AI solutions and infrastructure, along with continued growth in core GCP services.
Google's model APIs are processing “22 billion tokens per minute (up from 16 billion last quarter) driven by our workhorse Flash models”.
"We're also seeing great adoption of Gemini Enterprise, used by 90% of the Fortune 100, as well as strong demand for our security solutions," he noted.
Earlier, in a separate development, Alphabet increased the size of its equity offerings to $84.75 billion to expand its AI infrastructure and computing capacity.
Verily and Waymo fail to meet estimates
As per a Bloomberg report, Alphabet’s Other Bets division, which houses long-term ventures including life sciences company Verily and self-driving car unit Waymo, generated $382 million in revenue, falling below estimates.
Alphabet has continued pouring resources into Waymo, while seeking to give some of its other experimental ventures more independence as standalone companies, the report added.
It further noted that the giant's investment portfolio has provided an through stakes in AI rival Anthropic and Elon Musk's rocket company SpaceX. Gains in the value of Alphabet’s investments totaled nearly $100 billion for the quarter, sending net income soaring, it noted.
Alphabet shares were down about 0.5% in after-hours trading Wednesday, 22 July 2026, as per the report. The stock closed at $342.09/share in New York, it added.
(With inputs from Agencies)
Source: Livemint — Companies
