Alphabet recently reported its Q2 2026 earnings, with Google Search & Other revenue increasing 17% year over year to $63.27 billion. Total Alphabet revenue reached $119.8 billion, up 24% from a year earlier, marking the company’s 12th consecutive quarter of double-digit revenue growth. Operating income increased 30%, while the operating margin improved to 34%.
Google also announced that the Gemini app now has 950 million monthly active users, up from more than 750 million in Q4 2025. In addition, the company’s AI models now process 22 billion API tokens per minute, highlighting the continued growth of Google’s AI ecosystem.
What Contributed to the Growth?
In the earnings release, CEO Sundar Pichai emphasized the connection between Google Search and AI, stating that the company’s “popular AI features are driving Search query growth.”
During the earnings call, Chief Business Officer Philipp Schindler provided more insight into the 17% revenue increase, attributing it to strong performance across multiple industries as well as the continued integration of Gemini across Google’s advertising platforms.
According to Schindler, the strongest-performing advertising verticals included:
- Retail
- Finance
- Technology
- Media
- Entertainment
Google Ads AI Max and Ad Monetization
Schindler also highlighted AI Max, Google’s AI-powered targeting and creative solution for Search campaigns. He said the technology is helping advertisers reach search queries that were previously difficult to monetize. Google did not disclose how much AI Max contributed to the quarter’s revenue growth.
Search revenue has accelerated over the past year, with Google consistently attributing part of that growth to AI-powered Search features and advertising improvements.
What Do These Numbers Mean for Marketers and Businesses?
These results suggest that Google Search continues to experience strong user engagement despite increasing competition from AI-powered search tools. As Google continues integrating AI into Search and its advertising products, businesses have more opportunities to connect with consumers throughout the customer journey.
For marketers, the earnings reinforce that Google remains one of the most important digital marketing platforms for reaching potential customers through both organic search and Google Ads. Businesses should continue investing in SEO while also evaluating Google’s AI-powered advertising features, such as AI Max, to improve campaign performance, expand reach, and remain competitive as Search continues to change.
