Alphabet’s GOOGL second-quarter 2026 results, scheduled to be released on July 22, are expected to have benefited from solid momentum in Search and Cloud businesses. The momentum in Search is expected to have driven advertising revenues in the to-be-reported quarter. The Cloud business is riding on strong demand for AI infrastructure and an expanding clientele.
The Zacks Consensus Estimate for Google’s advertising revenues is currently pegged at $81.68 billion, suggesting 14.5% growth from the figure reported in the year-ago quarter. The consensus mark for Google Cloud revenues is currently pegged at $22.79 billion, indicating 67.3% growth from the figure reported in the year-ago quarter.
Alphabet has an impressive earnings surprise history. GOOGL’s earnings outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 34.43%.
Click here to know how Alphabet’s overall second-quarter 2026 results are likely to be.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. revenue-ttm | Alphabet Inc. Quote
GOOGL’s AI Push Aids Search & Cloud Businesses
GOOGL’s Search business is benefiting from AI infusion. Alphabet is leading the search domain with 91.27% market share, followed by Microsoft’s MSFT Bing, with 4.68% share, Yahoo!’s 1.28%, Yandex’s 0.79%, DuckDuckGo’s 0.65% and Baidu’s 0.43%, per the latest data from StatCounter.
Alphabet’s Search business is expected to remain the biggest contributor to second-quarter growth. GOOGL highlighted that AI Overviews and AI Mode are increasing user engagement, with users searching more frequently and queries reaching all-time highs. Gemini’s improved understanding of longer and more complex queries is also enabling Google to serve more relevant advertisements, improving advertiser ROI and supporting paid-click growth. The Zacks Consensus Estimate for Search and other revenues is currently pegged at $63.54 billion, suggesting 17.3% growth over the figure reported in the year-ago quarter.
Meanwhile, Google Cloud is expected to have remained a major growth engine in the to-be-reported quarter. Google Cloud has solidified its position as the third-largest provider in the highly competitive cloud infrastructure market against the likes of Microsoft Azure and Amazon’s AMZN Amazon Web Services. According to Synergy Research Group data, Google Cloud, along with Microsoft, is gaining market share, while Amazon continues to lead with a 28% market share in the first quarter of 2026. Alphabet and Microsoft had 21% and 14% market share, respectively.
Alphabet’s management has noted that enterprise AI solutions have become Cloud’s largest growth driver, supported by strong demand for Gemini models, AI infrastructure and security offerings. In the first quarter of 2026, customer acquisition doubled year over year, large enterprise deals accelerated, and the Cloud backlog expanded to more than $460 billion, providing strong revenue visibility into coming quarters.
GOOGL Benefits from Subscription Growth
Alphabet’s subscription business is expected to have contributed meaningfully to the second quarter of 2026. The company reported its strongest-ever quarter for consumer AI plans, driven primarily by Gemini app adoption in the first quarter of 2026. Total paid subscriptions reached roughly 350 million, with Google One and YouTube remaining key contributors, providing a growing stream of recurring revenue.
YouTube is expected to have remained a solid contributor through continued strength in direct-response advertising, Shorts engagement, Connected TV viewing and subscription growth. AI-powered recommendation systems, creator matching and advertising tools are expected to have improved monetization in the to-be-reported quarter.
Zacks Rank & Upcoming Earnings
Alphabet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify SHOP is a stock worth considering in the Zacks Internet Services industry to which Alphabet belongs. Shopify currently sports a Zacks Rank #1. Shopify is scheduled to report second-quarter 2026 results on Aug. 5.
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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Shopify Inc. (SHOP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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