GOOGL · 10-Q · 2026Q2 · Full report

Operating Expense Trends

Alphabet Inc. · 2026-07-23 · Importance 52 · Surprise 30 · From source text

Second-quarter operating expenses increased 27% year over year to $33.1 billion from $26.1 billion, primarily because of higher employee compensation, advertising and promotional activity, and depreciation. Research and development expense increased $4.4 billion to $18.2 billion, including a $2.9 billion increase in employee compensation and a $592 million increase in depreciation. Sales and marketing expense increased $1.3 billion to $8.4 billion, driven by $764 million of additional advertising and promotional spending and $402 million of additional employee compensation. General and administrative expense increased $1.3 billion to $6.5 billion, including a $1.5 billion legal charge and higher compensation, non-income taxes, and other legal expenses.

Key facts

• General and administrative expenses were $6,461 million for the three months ended June 30, 2026, an increase of $1.3 billion year over year which included a $1.5 billion charge related to a certain legal matter. source
• Total operating expenses were $33.1 billion for the three months ended June 30, 2026, an increase of $6.965 billion year over year. source
• Research and development expenses were $18,219 million for the three months ended June 30, 2026, an increase of $4.4 billion year over year. source
• Sales and marketing expenses were $8,403 million for the three months ended June 30, 2026, an increase of $1.3 billion year over year. source

Impact estimates