Alphabet Inc - Ordinary Shares - Class A
GOOGL
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+ FollowMarket Cap$4.17T
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Earnings Call Q2 2026
July 22, 2026 - AI Summary
Top-line momentum & profitability (good):
- Alphabet delivered 12th consecutive quarter of double-digit revenue growth: revenue $119.8B (+24% YoY; +23% constant currency).
- Operating income $40.8B (+30%); operating margin 34% (improved).
- EPS/net income increased significantly, largely tied to unrealized gains in equity investments (i.e., accounting/valuation driver, not only operating strength).
- Cash flow: Operating cash flow $39.1B in Q2; free cash flow (FCF) -$5.9B in Q2 due to heavy capex; FCF for trailing 12 months $53.3B.
AI-driven demand across Search/YouTube/Cloud (good + surprising):
- Search & other revenue +17% YoY to ~$63.3B; YouTube ads +13% YoY to ~$11.1B.
- AI usage/product adoption metrics strengthened materially:
- AI mode >1B monthly active users (since global expansion last Oct).
- Gemini app ~950M MAUs; daily active users tripled YoY.
- Omni (video creation “from any input”) shows +40% increase in daily active users since IO May.
- Model/API scale: ~22B tokens processed per day permanently (up from $16B tokens last quarter).
- Supply constrained environment continues—management explicitly frames it as a signal of momentum/adoption.
Cloud acceleration + backlog surge (good, key forecast implication):
- Google Cloud revenue +82% YoY to $24.8B.
- Cloud operating income $8.8B, operating margin 35.6% (up from ~20.7% last year).
- Backlog increased by >$50B sequentially to $514B, driven by Enterprise AI demand.
- Management expects just over 50% of backlog recognized as revenue over the next 24 months.
- Gemini Enterprise penetration is very strong: ~90% of Fortune 100 using it; agent development kit downloads ~70M total (Q2).
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$165.85
52.2% downside
Current Fair Value
52.2% downsideOvervalued by 52.2% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $4.17 Trillion |
|---|---|
| Enterprise Value | $4.25 Trillion |
| Dividend Yield | $0.85 (0.25%) |
| Earnings per Share | $10.91 |
| Beta | 1.24 |
| Outstanding Shares | 12,151,000,000 |
Return
| Return on Equity | 38.13% |
|---|---|
| Return on Assets | 26.49% |
| Return on Invested Capital | 37.76% |
Valuation & Multiples
| P/E Ratio | 17.12 |
|---|---|
| PEG | 5.75 |
| Price to Sales | 9.64 |
| Price to Book Ratio | 6.67 |
| Enterprise Value to Revenue | 9.53 |
| Enterprise Value to EBIT | 14.14 |
| Enterprise Value to Net Income | 17 |
| Total Debt to Enterprise | 0.03 |
| Debt to Equity | 0.2 |
Revenue Sources
No data
Insider Trades
Last Earnings Call
Report Date
July 23, 2026
EPS Estimate
$2.86
Average shareholder expectationRevenue Estimate
$116.53 B
Average shareholder expectationNext Earnings Call
Expected Date
October 28, 2026
EPS Estimate
$3.02
Average shareholder expectationRevenue Estimate
$126.56 B
Average shareholder expectationInstitutional Put/Call Ratio
Market sentiment based on institutional option activity.
| Put/Call Ratio | 0.7500▼ 28.21% |
|---|---|
| Total Calls | 130,607,632▲ 31.49% |
| Total Puts | 97,956,618▼ 4.46% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 65.25%▲ 28.00% |
|---|---|
| Total Invested | $1696.88B▲ 31.33% |
| Investors Holding | 6,001▲ 142.00% |
ESG Score
No data
About Alphabet Inc
135,301 employees
CEO: Sundar Pichai Larry Page and Sergey Brin founded Google in September 1998. Since then, the company has grown to more than 130,000 employees worldwide, with a wide range of popular products and platforms like Search, Maps, Ads, Gmail, Android, Chrome, ...