Alphabet Inc. (GOOGL) reported a 14.4% year-over-year increase in advertising revenues, reaching $81.63 billion in Q2 2026, driven by strong performances in Google Search and YouTube. Google Search revenues grew 17% to $63.27 billion, while YouTube contributed $11.06 billion, up 13%. The company attributes this revenue growth to enhancements through its AI tool, Gemini, which improved Shopping ad relevance by 20%.
In contrast, competitors Reddit and Meta Platforms (META) also experienced significant advertising revenue growth, with Reddit’s revenues increasing 64% to $762 million, and Meta’s rising 27% to $59.4 billion in the same quarter. Despite Alphabet’s strong performance, its stock has increased by only 9.3% year to date, underperforming the broader technology sector’s average growth of 15.4%.
The Zacks Consensus Estimate for Alphabet’s 2026 earnings stands at $20.51 per share, suggesting a notable 89.73% increase from the previous year. However, the company anticipates challenges in Q3 with tougher comparisons in Search and potential foreign-exchange impacts.
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