Alphabet Inc (NASDAQ: GOOG) reports second quarter 2026 results after the US market close, with the stock having massively outperformed over the past 12 months leading in. The print comes at a moment when investor enthusiasm around AI stocks has cooled and after recent reports that Google is running behind schedule on delivering its most powerful flagship AI model, Gemini 3.5 Pro.
The delay sparked a sell-off in Google shares on 16 July, with the stock falling amid broader weakness across AI and semiconductor names, yet GOOG remains 81% higher over the past year, dwarfing that of the Nasdaq 100 (+25.78%).
Wall St is looking for earnings per share of $3.04, up from $2.31 in the year-ago quarter. Revenue is expected to have grown by 21.24% to $116.91 billion, with a further 19.78% in growth priced for the next fiscal year (FY27).
What To Watch
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
There will be plenty to pay attention to in the print, with commentary around Gemini model rollout timelines and competitive positioning the first major watch (outside of core revenue numbers). The reported delay to Gemini 3.5 Pro has dented confidence, and management will need to address this directly on the earnings call to reassure investors that Google remains a leader in generative AI.
Search advertising revenue remains the core engine. Any sign of weakness in this segment, whether from softer query growth or pricing pressure, would likely weigh on the stock. Conversely, continued strength in YouTube and cloud revenue could offset concerns elsewhere and support the share price.
Margins will also be scrutinised. AI infrastructure spending has been climbing across the tech sector, and investors will want to see that Google is managing capex discipline while still investing for growth.
The Setup
Google’s Q2 results arrive during a period of shifting sentiment in the technology sector. After a strong run for AI-related stocks through the first half of 2026, markets have become more selective.
Despite pulling back more than 13% from recent highs, Google’s fundamentals remain strong. The company recently participated in more than $85 billion in equity financing led by Goldman Sachs, underscoring continued institutional confidence in Alphabet’s growth story. Goldman’s equity underwriting revenue jumped 130% in Q2, driven in part by this activity and the record SpaceX IPO.
Regulatory developments also loom in the background. Google DeepMind CEO Demis Hassabis unveiled a proposal this week for an international watchdog to vet cutting-edge AI models before release. The plan received praise from rivals including OpenAI’s Sam Altman and Elon Musk, and Hassabis is reportedly set to meet with US policymakers in Washington next week.
Markets are expecting a move of ~5.5% following the print, which could either make or break the next leg for the stock.
