Financial Analysis

"Commitments and Contingencies Commitments We have contractual obligations from contracts with remaining terms greater than one year primarily consisting of certain long-term supply agreements to secure future production capacity for technical infrastructure and inventory components. In addition, we have commitments for certain energy service agreements to secure energy for data center usage, and certain content licensing agreements. As of June 30, 2026, expected future fixed or guaranteed commitments under these agreements were $707.0 billion, the significant majority of which related to long-term supply agreements. We expect contractual commitments under the long-term supply agreements and content licenses to generally be fulfilled through 2030. The energy service agreements include terms ranging from two to 26 years, with obligations through 2054, and generally include take-or-pay provisions for minimum quantities of energy supply and substantive termination fees. Financial Guarantees We provide financial guarantees to certain counterparties, primarily in the form of backstop agreements with varying terms through September 2026. These backstop agreements support counterparty procurement of long-lead time equipment for our future power purchase and energy agreements. As of June 30, 2026, our maximum potential amount of future payments under these guarantees was $7.6 billion, upon which we may receive certain assets. The fair value of these obligations was not material. Inde …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Short-Term Debt We have a commercial paper program of up to $25.0 billion, which is used for general corporate purposes. We had no commercial paper outstanding as of December 31, 2025 and June 30, 2026 . Our short-term debt balance also includes the current portion of certain long-term debt. Long-Term Debt During 2026, we issued $20.0 billion of US dollar-denominated fixed-rate senior unsecured notes and $31.8 billion of foreign currency-denominated fixed-rate senior unsecured notes for general corporate purposes. In the first quarter of 2026, we issued fixed-rate senior unsecured notes consisting of: $20.0 billion US dollar-denominated notes with a weighted-average coupon rate of 4.80% and a weighted-average maturity of 15 years; 5.5 billion Sterling-denominated notes with a weighted-average coupon rate of 5.31% and a weighted-average maturity of 31 years; and CHF3.1 billion Swiss Franc-denominated notes with a weighted-average coupon rate of 1.06% and a weighted-average maturity of 10 years. In the second quarter of 2026, we issued fixed-rate senior unsecured notes consisting of: 9.0 billion Euro-denominated notes with a weighted-average coupon rate of 3.90% and a weighted-average maturity of 13 years; C$8.5 billion Canadian dollar-denominated notes with a weighted-average coupon rate of 4.35% and a weighted-average maturity of 15 years; and 576.5 billion Japanese yen-denominated notes with a weighted-average coupon rate of 2.65% and a weighted-average maturity of 8 ye …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenues disaggregated by type (in millions): Three Months Ended Six Months Ended June 30, June 30, 2025 2026 2025 2026 Google Search & other $ 54,190 $ 63,271 $ 104,892 $ 123,670 YouTube ads 9,796 11,055 18,723 20,938 Google Network 7,354 7,303 14,610 14,274 Google advertising 71,340 81,629 138,225 158,882 Google subscriptions, platforms, and devices 11,203 12,911 21,582 25,295 Google Services total 82,543 94,540 159,807 184,177 Google Cloud 13,624 24,768 25,884 44,796 Other Bets 373 382 823 793 Hedging gains (losses) (112) 106 148 (74) Total revenues $ 96,428 $ 119,796 $ 186,662 $ 229,692

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Compensation Plans Stock-B ased Compensation For the three months ended June 30, 2025 and 2026, total stock-based compensation (SBC) expense was $6.0 billion and $8.0 billion, including amounts associated with awards we expect to settle in Alphabet stock of $5.8 billion and $7.6 billion, respectively. For the six months ended June 30, 2025 and 2026, total SBC expense was $11.5 billion and $15.2 billion, including amounts associated with awards we expect to settle in Alphabet stock of $11.1 billion and $14.1 billion, resp ectively. Stock-Based Award Activities The following table summarizes the activities for unvested Alphabet RSUs and performance stock units (PSUs), both of which include dividend equivalents awarded to holders of unvested stock, for the six months ended June 30, 2026 (in millions, except per share amounts): Number of Shares Weighted- Average Grant-Date Fair Value Unvested as of December 31, 2025 282 $ 159.75 Granted 114 $ 292.21 Vested (86) $ 165.35 Forfeited/canceled (16) $ 180.00 Unvested as of June 30, 2026 294 $ 208.46 As of June 30, 2026, there was $59.1 billion of unrecognized compensation cost related to unvested RSUs and PSUs. This amount is expected to be recognized over a weighted-average period of 2.7 years .

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Goodwill and Intangible Assets Goodwill Changes in the carrying amount of goodwill for the six months ended June 30, 2026 were as follows (in millions): Google Services Google Cloud Other Bets Total Balance as of December 31, 2025 $ 24,870 $ 7,660 $ 850 $ 33,380 Additions 1,181 23,863 0 25,044 Foreign currency translation and other adjustments (33) (3) (560) (596) Balance as of June 30, 2026 $ 26,018 $ 31,520 $ 290 $ 57,828 Intangible Assets Information regarding intangible assets was as follows (in millions): As of December 31, 2025 As of June 30, 2026 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 1,332 $ (754) $ 578 $ 4,823 $ (936) $ 3,887 Customer relationships 582 (318) 264 5,090 (491) 4,599 Trade names and other 553 (307) 246 672 (264) 408 Total definite-lived intangible assets 2,467 (1,379) 1,088 10,585 (1,691) 8,894 Indefinite-lived intangible assets 195 0 195 211 0 211 Total intangible assets $ 2,662 $ (1,379) $ 1,283 $ 10,796 $ (1,691) $ 9,105 Amortization expense relating to intangible assets was $124 million and $367 million for the three months ended June 30, 2025 and 2026, respectively, and $246 million and $545 million for the six months ended June 30, 2025 and 2026, respectively. Expected amortization expense of definite-lived intangible assets held as of June 30, 2026 was as follows (in millions): Remainder of 2026 $ 747 2027 1,304 2028 1,1 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The following table presents provision for income taxes (in millions, except for effective tax rate): Three Months Ended Six Months Ended June 30, June 30, 2025 2026 2025 2026 Income before provision for income taxes $ 33,933 $ 138,753 $ 75,722 $ 216,165 Provision for income taxes $ 5,737 $ 26,560 $ 12,986 $ 41,394 Effective tax rate 16.9 % 19.1 % 17.1 % 19.1 % We are subject to income taxes in the US and foreign jurisdictions. Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes. The total amount of gross unrecognized tax benefits was $11.5 billion and $12.1 billion, of which $9.7 billion and $10.3 billion, if recognized, would affect our effective tax rate, as of December 31, 2025 and June 30, 2026, respectively.

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Leases We have entered into operating and finance lease agreements primarily for data centers, land, and offices throughout the world with varying lease terms. Components of lease costs were as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2025 2026 2025 2026 Operating lease cost $ 818 $ 942 $ 1,608 $ 1,834 Finance lease cost: Amortization of lease assets 112 259 208 485 Interest on lease liabilities 16 18 31 35 Finance lease cost 128 277 239 520 Variable lease cost 372 460 732 863 Total lease cost $ 1,318 $ 1,679 $ 2,579 $ 3,217 Supplemental information related to leases was as follows (in millions): As of December 31, 2025 As of June 30, 2026 Weighted-average remaining lease term: Operating leases 7.6 years 8.4 years Finance leases 8.3 years 8.6 years Weighted-average discount rate: Operating leases 3.6 % 3.8 % Finance leases 3.1 % 3.3 % As of December 31, 2025 As of June 30, 2026 Operating leases: Operating lease assets $ 15,221 $ 17,694 Accrued expenses and other liabilities $ 3,209 $ 3,446 Operating lease liabilities 12,744 14,591 Total operating lease liabilities $ 15,954 $ 18,037 Finance leases: Property and equipment, at cost $ 6,822 $ 7,915 Accumulated depreciation (2,025) (2,441) Property and equipment, net $ 4,797 $ 5,474 Accrued expenses and other liabilities $ 441 $ 449 Other long-term liabilities 2,059 2,141 Total finance lease liabilities $ 2,500 $ 2,590 Three Months Ended Six Months Ended June 30, June 30, 2025 2026 2025 2026 Cas …

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"Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03 ""Income Statement: Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)"" to improve the disclosures about an entitys expenses. Upon adoption, we will be required to disclose in the notes to the financial statements a disaggregation of certain expense categories included within the relevant expense captions on the consolidated statements of income. The standard is effective for our 2027 annual period, and our interim periods beginning in 2028, with early adoption permitted. The standard can be applied either prospectively or retrospectively. We are currently assessing adoption timing, the method of adoption, and the effect that the updated standard will have on our financial statement disclosures. In September 2025, the FASB issued ASU 2025-06 ""Intangibles: Goodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software"" to modernize the accounting for software costs under Subtopic 350-40, IntangiblesGoodwill and OtherInternal-Use Software (referred to as internal-use software). Upon adoption, we will be required to account for internal-use software under the updated capitalization criteria. The standard is effective for our interim and annual 2028 periods, with early adoption permitted. The standard can be appl …

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"Revenues Disaggregated Revenues The following table presents revenues disaggregated by type (in millions): Three Months Ended Six Months Ended June 30, June 30, 2025 2026 2025 2026 Google Search & other $ 54,190 $ 63,271 $ 104,892 $ 123,670 YouTube ads 9,796 11,055 18,723 20,938 Google Network 7,354 7,303 14,610 14,274 Google advertising 71,340 81,629 138,225 158,882 Google subscriptions, platforms, and devices 11,203 12,911 21,582 25,295 Google Services total 82,543 94,540 159,807 184,177 Google Cloud 13,624 24,768 25,884 44,796 Other Bets 373 382 823 793 Hedging gains (losses) (112) 106 148 (74) Total revenues $ 96,428 $ 119,796 $ 186,662 $ 229,692 The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions): Three Months Ended Six Months Ended June 30, June 30, 2025 2026 2025 2026 United States $ 46,063 48 % $ 60,846 51 % $ 90,027 48 % $ 114,821 50 % EMEA (1) 28,262 29 32,501 27 54,185 29 63,969 28 APAC (1) 16,480 17 19,317 16 31,334 17 37,605 16 Other Americas (1) 5,735 6 7,026 6 10,968 6 13,371 6 Hedging gains (losses) (112) 0 106 0 148 0 (74) 0 Total revenues $ 96,428 100 % $ 119,796 100 % $ 186,662 100 % $ 229,692 100 % (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (""Other Americas""). Revenue Backlog As of June 30, 2026, we had $519.5 billion of remaining performance obligations (revenue backlog), of which $513.9 billion related to Goo …

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Information about Segments and Geographic Areas We report our segment results as Google Services, Google Cloud, and Other Bets: Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases; and devices. Google Cloud includes infrastructure and platform services, applications, and other products and services for enterprise customers. Google Cloud generates services revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services. Google Cloud generates product revenues primarily from the sale of TPU systems. Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of autonomous transportation services and internet services. Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering activities, and inventory, as well as certain operating expenses are directly attributable to our segments. Due to the integrated nature of Alphabet, other costs and expenses, such as technical infrastructure …

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"Stockholders' Equity Common Stock Issuance On June 4, 2026, the company completed an underwritten public offering of 29 million Class A shares at a price of $355.1982 per share and 29 million Class C shares at a price of $351.8018 per share. All shares have a par value of $0.001 per share. Concurrently with the public offering, on June 4, 2026, the company completed a private placement of 14 million Class A and 14 million Class C shares to an affiliate of Berkshire Hathaway Inc. (the private placement). The shares were issued in a private placement pursuant to an exemption from registration under section 4(a)(2) of the Securities Act of 1933, as amended. The net proceeds received by the company were $20.5 billion from the public offering and $10.0 billion from the private placement, after deducting underwriting discounts, commissions, and direct offering expenses which were recorded as a reduction to common stock and APIC. These proceeds will be used for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute. Mandatory Convertible Preferred Stock On June 5, 2026, the company issued an aggregate amount of 385 million Series A and Series B depositary shares, representing 19 million shares of 6.25% Mandatory Convertible Preferred Stock, split evenly into Series A (indexed to Class A stock) and Series B (indexed to Class C stock). Each depositary share represents a 1/20th fractional interest in a share of preferred stock. The man …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing