GOOG · 10-Q · 2026Q2 · Full report
Operating Margin Expansion
Alphabet Inc. · 2026-07-23 · Importance 58 · Surprise 56 · No source text
Second-quarter operating income increased $9.5 billion year over year to $40.8 billion, while operating margin increased to 34.0% from 32.4%. Google Services operating income rose $6.5 billion to $39.5 billion, primarily from higher revenue partially offset by increased traffic acquisition costs. Google Cloud operating income increased $6.0 billion to $8.8 billion as revenue growth exceeded higher technical-infrastructure usage costs and employee compensation. Other Bets operating loss widened $553 million to $1.8 billion in the quarter, primarily because of higher employee compensation expenses.
Key facts
- Operating margin (dollar amounts provided in table) increased by $9,499 million year over year for the three months ended June 30, 2026 (from $31,271 million to $40,770 million). source
- Operating income for the three months ended June 30, 2026 was $40,770 million ($40.77 billion). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +34.0% | Operating income for the three months ended June 30, 2026 was $40,770 million ($40.77 billion). |
| operating_income | positive | realized | +7.9% | Operating margin (dollar amounts provided in table) increased by $9,499 million year over year for the three months ended June 30, 2026… |