What changed in this filing

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Item 1. Financial Statements

2026-07-23 compared with 2026-04-30 · 436 added, 141 removed, 921 unchanged (39% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(in millions, except par value per share amounts)

(in millions, except per share amounts)

December 31, 2025 As of

March 31, 2026

June 30, 2026

Current assets:

3 unchanged sentences

Accounts receivable, net 62,886 69,175

Inventory 2,439 9,991

Other current assets 13,870 21,884

18 unchanged sentences

Income taxes payable, non-current 9,531 11,306

Deferred income taxes 919 22,819

Operating lease liabilities 12,744 14,591

3 unchanged sentences

Stockholders’ equity:

Preferred stock, $ 0.001 par value per share, 100 shares authorized;

no shares issued and outstanding

Series A and Series B preferred stock and additional paid-in capital, $ 0.001 par value per share, 100 shares authorized;

6.25 % mandatory convertible preferred stock, 0 and 19 shares issued and outstanding allocated equally between each series with a liquidation preference of $ 1,000 per share

Class A, Class B, and Class C stock and additional paid-in capital, $ 0.001 par value per share:

11 unchanged sentences

(in millions, except per share amounts;

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Revenues $ 96,428 $ 119,796 $ 186,662 $ 229,692

10 unchanged sentences

Net income 28,196 112,193 62,736 174,771

Basic net income per share (Note 12)

Preferred stock dividends 0 86 0 86

Net income available to common stockholders $ 28,196 $ 112,107 $ 62,736 $ 174,685

Basic net income per common share (Note 12)

$ 2.33 $ 9.23 $ 5.16 $ 14.41

Diluted net income per share (Note 12)

Diluted net income per common share (Note 12)

$ 2.31 $ 9.11 $ 5.12 $ 14.24

4 unchanged sentences

(in millions;

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Net income $ 28,196 $ 112,193 $ 62,736 $ 174,771

1 unchanged sentence

Change in foreign currency translation adjustment, net of income tax benefit (expense) of $ 190 , $( 36 ), $ 235 , and $( 90 )

2,610 ( 9 ) 3,273 ( 335 )

Available-for-sale investments:

2 unchanged sentences

Net change, net of income tax benefit (expense) of $( 46 ), $ 68 , $( 205 ), and $ 174

162 ( 239 ) 723 ( 614 )

Cash flow hedges:

2 unchanged sentences

Net change, net of income tax benefit (expense) of $ 208 , $( 41 ), $ 339 , and $( 158 )

( 813 ) 143 ( 1,323 ) 580

Other comprehensive income (loss) 1,959 ( 105 ) 2,673 ( 369 )

5 unchanged sentences

(in millions;

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Series A and Series B Preferred Stock and Additional Paid-In Capital

Class A, Class B, Class C Stock and Additional Paid-In Capital Accumulated

3 unchanged sentences

Stockholders’

Shares Amount

Balance as of December 31, 2024 12,211 $ 84,800 $ ( 4,800 ) $ 245,084 $ 325,084

Stock issued 27 0 0 0 0

Shares Amount Shares Amount

Balance as of March 31, 2025 0 $ 0 12,155 $ 86,725 $ ( 4,086 ) $ 262,628 $ 345,267

Common stock issued 0 0 30 0 0 0 0

Stock-based compensation 0 0 0 6,045 0 0 6,045

1 unchanged sentence

Repurchases of stock 0 0 ( 81 ) ( 811 ) 0 ( 12,452 ) ( 13,263 )

Dividends and dividend equivalents declared ($ 0.20 per share)

Dividends and dividend equivalents declared on common stock ($ 0.21 per share)

0 0 0 33 0 ( 2,612 ) ( 2,579 )

2 unchanged sentences

Other comprehensive income (loss) 0 0 0 0 1,959 0 1,959

Balance as of March 31, 2025 12,155 $ 86,725 $ ( 4,086 ) $ 262,628 $ 345,267

Three Months Ended March 31, 2026

Balance as of June 30, 2025 0 $ 0 12,104 $ 89,283 $ ( 2,127 ) $ 275,760 $ 362,916

Six Months Ended June 30, 2025

Series A and Series B Preferred Stock and Additional Paid-In Capital

Class A, Class B, Class C Stock and Additional Paid-In Capital Accumulated

3 unchanged sentences

Stockholders’

Shares Amount

Shares Amount Shares Amount

Balance as of December 31, 2024 0 $ 0 12,211 $ 84,800 $ ( 4,800 ) $ 245,084 $ 325,084

Stock issued 28 0 0 0 0

Common stock issued 0 0 57 0 0 0 0

Stock-based compensation 0 0 0 11,598 0 0 11,598

Tax withholding related to vesting of restricted stock units, and other 0 0 0 ( 5,949 ) 0 0 ( 5,949 )

Dividends and dividend equivalents declared ($ 0.21 per share)

Repurchases of stock 0 0 ( 164 ) ( 1,626 ) 0 ( 26,938 ) ( 28,564 )

Dividends and dividend equivalents declared on common stock ($ 0.41 per share)

0 0 0 60 0 ( 5,122 ) ( 5,062 )

2 unchanged sentences

Other comprehensive income (loss) 0 0 0 0 2,673 0 2,673

Balance as of June 30, 2025 0 $ 0 12,104 $ 89,283 $ ( 2,127 ) $ 275,760 $ 362,916

Alphabet Inc.

Three Months Ended June 30, 2026

Series A and Series B Preferred Stock and Additional Paid-In Capital Class A, Class B, Class C Stock and Additional Paid-In Capital Accumulated

Comprehensive

Income (Loss) Retained

Earnings Total

Stockholders’

Shares Amount Shares Amount

Balance as of March 31, 2026 0 $ 0 12,116 $ 96,902 $ ( 2,180 ) $ 384,024 $ 478,746

Common stock issued 0 0 114 30,417 0 0 30,417

Mandatory convertible preferred stock issued 19 19,034 0 0 0 0 19,034

Purchase of capped call options 0 ( 1,011 ) 0 0 0 0 ( 1,011 )

Stock-based compensation 0 0 0 7,995 0 0 7,995

Tax withholding related to vesting of restricted stock units, and other 0 0 0 ( 4,552 ) 0 ( 16 ) ( 4,568 )

Dividends and dividend equivalents declared on common stock ($ 0.22 per share)

0 0 0 51 0 ( 2,744 ) ( 2,693 )

Dividends on preferred stock 0 0 0 0 0 ( 86 ) ( 86 )

Sale of interest in consolidated entities 0 0 0 558 0 0 558

Net income 0 0 0 0 0 112,193 112,193

Other comprehensive income (loss) 0 0 0 0 ( 105 ) 0 ( 105 )

Balance as of June 30, 2026 19 18,023 12,230 $ 131,371 $ ( 2,285 ) $ 493,371 $ 640,480

Six Months Ended June 30, 2026

Series A and Series B Preferred Stock and Additional Paid-In Capital Class A, Class B, Class C Stock and Additional Paid-In Capital Accumulated

Comprehensive

Income (Loss) Retained

Earnings Total

Stockholders’

Shares Amount Shares Amount

Balance as of December 31, 2025 0 $ 0 12,088 $ 93,126 $ ( 1,916 ) $ 324,055 $ 415,265

Common stock issued 0 0 142 30,417 0 0 30,417

Mandatory convertible preferred stock issued 19 19,034 0 0 0 0 19,034

Purchase of capped call options 0 ( 1,011 ) 0 0 0 0 ( 1,011 )

Stock-based compensation 0 0 0 14,788 0 0 14,788

Tax withholding related to vesting of restricted stock units, and other 0 0 0 ( 10,819 ) 0 ( 16 ) ( 10,835 )

Dividends and dividend equivalents declared on common stock ($ 0.43 per share)

0 0 0 101 0 ( 5,353 ) ( 5,252 )

Dividends on preferred stock 0 0 0 0 0 ( 86 ) ( 86 )

Sale of interest in consolidated entities 0 0 0 3,758 0 0 3,758

Net income 0 0 0 0 0 174,771 174,771

Other comprehensive income (loss) 0 0 0 0 ( 369 ) 0 ( 369 )

Balance as of June 30, 2026 19 $ 18,023 12,230 $ 131,371 $ ( 2,285 ) $ 493,371 $ 640,480

See accompanying notes.

3 unchanged sentences

(in millions;

Three Months Ended

Six Months Ended

Operating activities

7 unchanged sentences

Accounts receivable, net ( 1,201 ) ( 6,904 )

Inventory ( 628 ) ( 7,739 )

Income taxes, net ( 2,434 ) 8,304

17 unchanged sentences

Dividend payments ( 4,977 ) ( 5,231 )

Proceeds from issuance of common stock, net of costs 0 30,499

Proceeds from issuance of mandatory convertible preferred stock, net of costs 0 19,063

Proceeds from issuance of debt, net of costs 31,378 56,226

1 unchanged sentence

Proceeds from sale of interest in consolidated entities, net 400 3,758

Other financing activities ( 400 ) ( 686 )

Net cash provided by (used in) financing activities ( 26,033 ) 86,320

5 unchanged sentences

Property and equipment included in accrued liabilities and accounts payable $ 10,635 $ 29,113

$ 11,388 $ 24,131

See accompanying notes.

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cloud-based solutions that provide enterprise customers of all sizes with infrastructure, platform services, and applications;

and sales of other products and services, such as fees received for subscription-based products, apps and in-app purchases, and devices.

and sales of products and services, such as fees received for subscription-based products, apps and in-app purchases, devices, and Tensor Processing Unit (TPU) systems.

Basis of Consolidation

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We base our estimates on assumptions, both historical and forward looking, that are believed to be reasonable, and the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to our customers, and the collectibility of an amount that we expect in exchange for those goods or services is probable.

Sales and other similar taxes are excluded from revenues.

Google Advertising

Google advertising revenues consist of revenues from:

• Google Search and other properties, including revenues from traffic generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.

and other Google owned and operated properties like Gmail, Google Maps, and Google Play;

• YouTube properties;

• Google Network properties, including revenues from Google Network properties participating in AdMob, AdSense, and Google Ad Manager.

Alphabet Inc.

Our customers generally purchase advertising inventory through Google Ads, Google Ad Manager, Google Display & Video 360, and Google Marketing Platform, among others.

We offer advertising by delivering both performance and brand advertising.

We recognize revenues for performance advertising when a user engages with the advertisement.

For brand advertising, we recognize revenues when the ad is displayed, or a user views the ad.

For ads placed on Google Network properties, we evaluate whether we are the principal (i.e., report revenues on a gross basis) or agent (i.e., report revenues on a net basis).

Generally, we report advertising revenues for ads placed on Google Network properties on a gross basis;

that is, the amounts billed to our customers are recorded as revenues, and amounts paid to Google Network partners are recorded as cost of revenues.

Where we are the principal, we control the advertising inventory before it is transferred to our customers.

Our control is evidenced by our sole ability to monetize the advertising inventory before it is transferred to our customers and is further supported by us being primarily responsible to our customers and having a level of discretion in establishing pricing.

Google Subscriptions, Platforms, and Devices

Google subscriptions, platforms, and devices revenues consist of revenues from:

• consumer subscriptions, which primarily include revenues from YouTube services, such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One, which offers access to our most capable Gemini models;

• platforms, which primarily include revenues from Google Play sales of apps and in-app purchases;

• devices, which primarily include sales of the Pixel family of devices;

• other products and services.

Subscription revenues are recognized ratably over the period of the subscription, primarily monthly.

We report revenues from Google Play sales of apps and in-app purchases on a net basis because our performance obligation is to facilitate a transaction between app developers and end users for which we earn a service fee.

Google Cloud revenues consist of revenues from:

• Google Cloud Platform primarily generates consumption-based fees and subscriptions for infrastructure, platform, and other services.

These services provide access to solutions such as artificial intelligence (AI) offerings including our enterprise AI infrastructure, Vertex AI platform, and Gemini Enterprise;

cybersecurity offerings;

and data and analytics solutions.

• Google Workspace includes subscriptions for cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Calendar, Drive, and Meet, with integrated features like Gemini for Google Workspace.

• Product sales, primarily the sale of TPU systems.

• Other enterprise services.

Our cloud services are generally provided on either a consumption or subscription basis and may have contract terms longer than a year.

Revenues related to cloud services provided on a consumption basis are recognized when the customer utilizes the services, based on the quantity of services consumed using the relative standalone selling price allocation.

Revenues related to cloud services provided on a subscription basis are recognized over the contract term as the customer receives and consumes the benefits of the cloud services.

Our Google Cloud product sales generally consist of the sale of TPU systems comprising hardware, software, installation, support, and extended warranty services.

Customer arrangements may also include options which are accounted for as rights of return.

Product sales revenue from hardware, net of estimated allowances for returns, and software is recognized generally when control of the hardware is transferred to the customer.

Installation, support, and extended warranty services revenue are recognized ratably over the service period or as services are performed.

Arrangements with Multiple Performance Obligations

At contract inception, we assess whether concurrent agreements with a customer should be accounted for as a single agreement.

Our contracts with customers may include multiple performance obligations.

For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price.

Alphabet Inc.

We generally determine standalone selling prices based on observable prices of our products and services sold or priced separately in comparable circumstances to similar customers.

Customer Incentives and Credits

Certain customers receive cash-based incentives or credits, which are accounted for as variable consideration.

We estimate these amounts based on the expected amount to be provided to customers and reduce revenues.

We believe that there will not be significant changes to our estimates of variable consideration related to customer incentives and credits.

Sales Commissions

We expense sales commissions when incurred when the period of the expected benefit is one year or less.

We recognize an asset for certain sales commissions and amortize if the expected benefit period is greater than one year.

These costs are recorded within sales and marketing expenses.

Cost of Revenues

Cost of revenues consists of traffic acquisition costs (TAC) and other costs of revenues.

• TAC includes:

◦ amounts paid to our distribution partners who make available our search access points and other ad-supported services.

Our distribution partners include browser providers, mobile carriers, original equipment manufacturers, and software developers;

◦ amounts paid to Google Network partners primarily for ads displayed on their properties.

• Other cost of revenues includes:

◦ content acquisition costs, which are payments to content providers from whom we license video and other content for distribution, primarily related to YouTube (we pay fees to these content providers based on revenues generated, subscriber counts, or a flat fee);

◦ depreciation expense, primarily related to our technical infrastructure;

◦ employee compensation expenses related to our technical infrastructure and other operations such as content review and customer and product support;

◦ inventory and other costs related to the devices and TPU system hardware we sell;

◦ other technical infrastructure operations costs, including energy, equipment, and network capacity costs.

Inventory consists primarily of hardware related to TPU systems for sale to enterprise customers and devices, which primarily include the Pixel family of products.

We utilize third-party contract manufacturers to manufacture our inventory.

Our inventory includes raw material components purchased directly from our suppliers;

work-in-process inventory undergoing conversion into finished products;

and fully assembled finished goods.

Inventories are stated at the lower of cost or net realizable value.

Acquired Intangible Assets

19 unchanged sentences

We are currently assessing adoption timing, the method of adoption, and the effect that the updated standard will have on our consolidated financial statements.

In May 2026, the FASB issued ASU 2026-02 "Environmental Credits and Environmental Credit Obligations (Topic 818)” to provide recognition, measurement, presentation, and disclosure guidance for environmental credits and environmental credit obligations.

Upon adoption, we will be required to account for environmental credits and environmental credit obligations under the new guidance.

The standard is effective for our interim and annual 2028 periods, with early adoption permitted.

The standard should be adopted on a retrospective basis.

We are currently assessing adoption timing and the effect that the updated standard will have on our consolidated financial statements.

Prior Period Reclassifications

2 unchanged sentences

The following table presents revenues disaggregated by type (in millions):

Three Months Ended

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

9 unchanged sentences

Total revenues $ 96,428 $ 119,796 $ 186,662 $ 229,692

Alphabet Inc.

The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions):

Three Months Ended

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 %

8 unchanged sentences

and Canada and Latin America ("Other Americas").

Alphabet Inc.

Revenue Backlog

As of March 31, 2026, we had $ 467.6 billion of remaining performance obligations (“revenue backlog”), of which $ 462.3 billion related to Google Cloud.

As of June 30, 2026, we had $ 519.5 billion of remaining performance obligations (“revenue backlog”), of which $ 513.9 billion related to Google Cloud.

Revenue backlog represents commitments in customer contracts that have not yet been recognized as revenue.

We expect to recognize just over 50 % of the revenue backlog as revenues over the next 24 months with the remainder to be recognized thereafter.

The estimated revenue backlog and timing of revenue recognition for these commitments is largely driv en by contract duration, our ability to deliver in accordance with relevant contract terms, and when our customers utilize services.

The estimated revenue backlog and timing of revenue recognition for these commitments is largely driven by contract duration, our ability to deliver in accordance with relevant contract terms, and when our customers utilize services.

Revenue backlog includes related deferred revenue currently recorded as well as amounts that will be invoiced in future periods and excludes cancellable contracts and payments we make to our customers not expected to be in exchange for distinct goods and services.

In the first quarter of 2026, we elected to change our reporting of revenue backlog to now also include contracts with an original expected term of one year or less.

As of March 31, 2026, the portion of our revenue backlog related to contracts with an original expected term of one year or less was approximately $ 7.3 billion .

In the first quarter of 2026, we elected to change our reporting of revenue backlog to also include contracts with an original expected term of one year or less.

Deferred Revenues

We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable.

Deferred revenues primarily relate to Google Cloud and Google s ubscriptions, platforms, and devices.

Total deferred revenue as of December 31, 2025 was $ 8.6 billion, of which $ 3.5 billion was recognized as revenues for the three months ended March 31, 2026.

Total deferred revenue as of March 31, 2026 was $ 9.8 billion.

Deferred revenues primarily relate to Google Cloud and Google subscriptions, platforms, and devices.

Total deferred revenue as of December 31, 2025 was $ 8.6 billion, of which $ 4.9 billion was recognized as revenues for the six months ended June 30, 2026.

Total deferred revenue as of June 30, 2026 was $ 10.1 billion.

Financial Instruments

23 unchanged sentences

4,402 1,911 6,313

Time deposits

Government bonds 0 50,549 50,549

4 unchanged sentences

Total $ 15,751 $ 95,787 $ 126,843

As of March 31, 2026

As of June 30, 2026

Quoted Prices in

3 unchanged sentences

Observable Inputs

Cash $ 12,823

Cash equivalents:

Money market funds

$ 14,520 $ 0 $ 14,520

Time deposits

0 3,789 3,789

Government bonds 0 24,770 24,770

5 unchanged sentences

86,049 1,014 87,063

Time deposits 0 0 0

Government bonds 0 51,822 51,822

3 unchanged sentences

86,049 100,514 186,563

Other non-current assets:

Marketable equity securities (2)

14,126 0 14,126

Total $ 114,695 $ 129,082 $ 256,600

(1) Includes $ 80.0 billion of Space Exploration Technologies Corp.

(SpaceX) shares subject to short-term restrictions on the ability to sell.

(2) Includes $ 14.1 billion of SpaceX shares subject to long-term restrictions on the ability to sell through the third quarter of 2027.

Alphabet Inc.

5 unchanged sentences

These inputs vary significantly based on investment type.

As of March 31, 2026, the carrying value of our non-marketable equity securities accounted for under the measurement alternative was $ 101.3 billion, of which $ 73.6 billion was remeasured at fair value during the three months ended March 31, 2026 and was primarily classified within Level 2 o f the fair value hierarchy at the time of measurement.

As of June 30, 2026, the carrying value of our non-marketable equity securities accounted for under the measurement alternative was $ 124.3 billion, of which $ 87.9 billion was remeasured at fair value during the three months ended June 30, 2026 and was primarily classified within Level 2 o f the fair value hierarchy at the time of measurement.

Debt and Equity Securities

1 unchanged sentence

The following table summarizes the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates (in millions):

March 31, 2026

June 30, 2026

Due in 1 year or less $ 16,699

12 unchanged sentences

$ 85,123 $ 859 $ ( 186 ) $ 85,796

As of March 31, 2026

As of June 30, 2026

Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

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Total $ 6,522 $ ( 13 ) $ 6,638 $ ( 165 ) $ 13,160 $ ( 178 )

As of March 31, 2026

As of June 30, 2026

Less than 12 Months 12 Months or Greater Total

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The following table summarizes gains and losses for debt securities, reflected as a component of OI&E (in millions):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Unrealized gain (loss) on fair value option debt securities $ 130 $ 28 $ 227 $ ( 114 )

14 unchanged sentences

December 31, 2025 As of

March 31, 2026

June 30, 2026

Non-marketable securities:

10 unchanged sentences

$ 68,687 $ 131,461

(1) As of June 30, 2026, our investments in non-marketable securities accounted for under the measurement alternative primarily consist of our investment in a private company.

Gains and Losses on Equity Securities

Gains and losses (including impairments), net, for equity securities included in OI&E are summarized below (in millions):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Gross unrealized gain on non-marketable equity securities accounted for under the measurement alternative

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Unrealized net gain (loss) on non-marketable equity securities accounted for under the measurement alternative

216 77,354 9,521 113,579

Unrealized net gain (loss) on marketable and other equity securities

853 21,399 1,088 21,531

Realized net gain (loss) on marketable and non-marketable equity securities sold during the period

217 278 435 836

Total gain (loss) on equity securities in other income (expense), net (1)

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This represents the total economic impact of the investment, regardless of when the gains or losses were previously recognized.

Cumulative net gains on equity securities sold were $ 161 million and $ 502 million during the three months ended March 31, 2025 and 2026, respectively.

Cumulative net gains on equity securities sold were $ 43 million and $ 490 million during the three months ended June 30, 2025 and 2026, respectively, and $ 204 million and $ 992 million during the six months ended June 30, 2025 and 2026, respectively.

Derivative Financial Instruments

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These credit and equity derivatives are classified within Level 3 of the fair value hierarchy.

Our valuation methods include probability-weighted expected return models, which may include a combination of observable and unobservable inputs, including counterparty risk, credit default rates, risk-free rate, and our contractual rights and obligations under the agreements.

Our valuation methods include probability-weighted expected return models, which may include a combination of observable and unobservable inputs, including counterparty risk, credit default rates, risk-free rates, and our contractual rights and obligations under the agreements.

We recognize derivative instruments in the Consolidated Balance Sheets at fair value.

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The difference between fair value changes of the excluded component and the amount amortized to revenues is recorded in AOCI.

As of March 31, 2026, the net accumulated gain on our foreign currency cash flow hedges b efore tax effect wa s $ 415 million , which is expected to be reclassified from AOCI into revenues within the next 12 mo nths.

As of June 30, 2026, the net accumulated gain on our foreign currency cash flow hedges b efore tax effect wa s $ 614 million, which is expected to be reclassified from AOCI into revenues within the next 12 months.

Additionally, we may designate interest rate derivatives as cash flow hedges to manage our exposure to certain interest rate risks.

6 unchanged sentences

The difference between fair value changes of the excluded component and the amount amortized to OI&E is recorded in AOCI.

Foreign currency-denominated debt designated as net investment hedges had a carrying value of $ 15.4 billion and $ 19.6 billion as of December 31, 2025 and March 31, 2026, respectively.

Foreign currency-denominated debt designated as net investment hedges had a carrying value of $ 15.4 billion and $ 23.8 billion as of December 31, 2025 and June 30, 2026, respectively.

Derivatives Not Designated as Hedging Instruments

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The notional amounts for equity derivatives represent an agreement for future capital funding in the form of notes receivable or equity to be funded in multiple tranches contingent upon the achievement of specified operational and financial milestones through 2030.

The fair value of these equity derivatives was not material as of March 31, 2026 .

Gains and losses arising from these credit and equity derivatives are recorded within the “other” component of OI&E.

2 unchanged sentences

December 31, 2025 As of

March 31, 2026

June 30, 2026

Derivatives designated as hedging instruments:

Foreign exchange derivatives

Foreign exchange and other derivatives

Cash flow hedges $ 23,852 $ 27,493

7 unchanged sentences

Other derivatives $ 15,900 $ 14,925

In April, 2026, we entered into additional agreements with certain third parties to backstop certain obligations relating to third-party data centers that we expect to be accounted for as credit derivatives with notional amounts totaling approximately $ 15.3 billion.

See Note 5 for further details on variable interest entity considerations relating to our equity and credit derivatives.

The fair values of outstanding derivative instruments were as follows (in millions):

As of December 31, 2025 As of March 31, 2026

As of December 31, 2025 As of June 30, 2026

Liabilities (2)

6 unchanged sentences

92 15 168 646

Equity derivatives 0 0 0 457

Credit derivatives

6 unchanged sentences

The gains (losses) on derivatives and non-derivative financial instruments in cash flow hedging and net investment hedging relationships recognized in other comprehensiv e income are summarized below (in millions):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Cash flow hedging relationship:

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(in millions):

Three Months Ended March 31,

Three Months Ended June 30,

Revenues Other income (expense), net Revenues Other income (expense), net

5 unchanged sentences

Amount excluded from the assessment of effectiveness

Effect of net investment hedges:

Foreign exchange derivatives

Amount excluded from the assessment of effectiveness 0 29 0 63

Effect of non-designated hedges:

Foreign exchange derivatives 0 180 0 ( 602 )

Equity derivatives 0 0 0 ( 457 )

Credit derivatives 0 0 0 70

Other derivatives 0 ( 24 ) 0 48

Total gains (losses) $ ( 112 ) $ 185 $ 106 $ ( 878 )

Six Months Ended June 30,

Revenues Other income (expense), net Revenues Other income (expense), net

Total amounts included in the Consolidated Statements of Income $ 186,662 $ 13,845 $ 229,692 $ 135,699

Effect of cash flow hedges:

Foreign exchange derivatives

Amount included in the assessment of effectiveness $ 104 $ 0 $ ( 114 ) $ 0

Amount excluded from the assessment of effectiveness (amortized) 44 0 40 0

Effect of fair value hedges:

8 unchanged sentences

Foreign exchange derivatives 0 245 0 ( 781 )

Equity derivatives 0 0 0 ( 457 )

Credit derivatives 0 0 0 ( 77 )

12 unchanged sentences

Derivatives liabilities $ 489 $ ( 110 ) $ 379 $ ( 140 ) $ ( 15 ) $ 224

As of March 31, 2026

As of June 30, 2026

Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset

4 unchanged sentences

Derivatives liabilities $ 2,037 $ ( 79 ) $ 1,958 $ ( 635 ) $ ( 14 ) $ 1,309

(1) The balances as of December 31, 2025 and March 31, 2026 were related to derivatives allowed to be net settled in accordance with our master netting agreements.

(1) The balances as of December 31, 2025 and June 30, 2026 were related to derivatives allowed to be net settled in accordance with our master netting agreements.

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

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Operating lease cost $ 818 $ 942 $ 1,608 $ 1,834

7 unchanged sentences

December 31, 2025 As of

March 31, 2026

June 30, 2026

Weighted-average remaining lease term:

5 unchanged sentences

December 31, 2025 As of

March 31, 2026

June 30, 2026

Operating leases:

10 unchanged sentences

Total finance lease liabilities $ 2,500 $ 2,590

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Cash payments for lease liabilities:

Operating cash flows used for operating leases

$ 783 $ 899 $ 1,661 $ 1,817

Operating cash flows used for finance leases

$ 16 $ 18 $ 31 $ 35

Financing cash flows used for finance leases (1)

$ 110 $ 318 $ 302 $ 840

Assets obtained in exchange for lease liabilities:

1 unchanged sentence

Finance leases $ 83 $ 691 $ 606 $ 902

(1) Additionally, in the three month period ended March 31, 2026, we made $ 634 million of lease prepayments for leases not yet commenced, which are expected to be accounted for as finance leases.

Future lease payments as of March 31, 2026 were as follows (in millions):

(1) Additionally, during the three and six months ended June 30, 2026, we made $ 201 million and $ 835 million of lease prepayments for leases not yet commenced, respectively, which are expected to be accounted for as finance leases.

Future lease payments as of June 30, 2026 were as follows (in millions):

Operating Leases Finance

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Total lease liability balance $ 18,037 $ 2,590

As of March 31, 2026, we have entered into leases primarily related to data centers that have not yet commenced with future lease payments of $ 75.6 billion that are not yet recorded.

These leases will commence between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years.

As of June 30, 2026, we have entered into leases, primarily related to data centers, that have not yet commenced with future lease payments of $ 85.2 billion that are not yet recorded.

These leases will commence between 2026 and 2031 with non-cancelable lease terms between one and 26 years.

Additionally, in June 2026, we entered into a short-term lease agreement with a non-cancelable commitment of approximately $ 5.8 billion, which will commence in the third quarter of 2026.

Variable Interest Entities

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The maximum exposure to these VIEs is generally limited to the current carrying value plus future funding commitments.

As of December 31, 2025 and March 31, 2026, future funding commitments were $ 1.1 billion and $ 40.7 billion, respectively.

As of March 31, 2026, this amount includes commitments for a future private investment consisting of a $ 10.0 billion capital commitment and $ 30.0 billion of future capital funding contingent upon the achievement of specified operational and financial milestones through 2030, which is accounted for as an equity derivative.

As of December 31, 2025 and June 30, 2026, future funding commitments were $ 1.1 billion and $ 21.9 billion, respectively.

As of June 30, 2026, this amount includes $ 20.0 billion of future capital funding commitments with a private company contingent upon the achievement of specified operational and

financial milestones through 2030, which is accounted for as an equity derivative.

See Note 3 for further details on derivatives.

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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 March 31, 2026 .

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 the first quarter of 2026, we issued fixed-rate senior unsecured notes consisting of:

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;

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and CHF 3.1 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 years.

Total outstanding long-term debt is summarized below (in millions, except percentages):

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December 31, 2025 As of

March 31, 2026

June 30, 2026

2016 US dollar notes 2026 2.00 % 2.23 % $ 2,000 $ 2,000

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0.52 % - 1.90 %

2026 Euro notes (2)

2030 - 2063 3.20 % - 4.80 %

3.29 % - 4.88 %

2026 Canadian dollar notes (2)

2031 - 2056 3.65 % - 5.00 %

3.83 % - 5.10 %

2026 Japanese yen notes (2)

2029 - 2066 1.97 % - 4.60 %

2.04 % - 4.64 %

Other long-term debt

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The notes in the table above are senior unsecured obligations and rank equally with each other.

We may redeem the fixed-rate notes at any time in whole or in part at specified redemption prices.

The floating-rate notes are not redeemable prior to maturity.

Interest is payable quarterly for the floating-rate notes, semi-annually for the US dollar-denominated fixed-rate notes, and annually for the euro-, sterling-, and Swiss franc-denominated fixed-rate notes.

We may redeem the fixed-rate notes, other than the Japanese yen-denominated notes, at any time in whole or in part at specified redemption prices.

The floating-rate notes and Japanese yen-denominated notes are not redeemable prior to maturity.

Interest is payable quarterly for the floating-rate notes, semi-annually for the US dollar, Canadian dollar, and Japanese yen-denominated fixed-rate notes, and annually for the Euro, Sterling, and Swiss franc-denominated fixed-rate notes.

The effective interest rates are based on proceeds received and contractual interest payments.

The total estimated fair value of the outstanding notes was approximately $ 45.6 billion and $ 75.3 billion as of December 31, 2025 and March 31, 2026, respectively.

The total estimated fair value of the outstanding notes was approximately $ 45.6 billion and $ 94.9 billion as of December 31, 2025 and June 30, 2026, respectively.

The fair value was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy.

Credit Facility

As of March 31, 2026, we had $ 11.7 billion of credit facilities expiring at various dates through April 2030, of which $ 1.2 billion was outstanding.

As of June 30, 2026, we had $ 11.7 billion of credit facilities, expiring at various dates through April 2030, of which $ 1.3 billion was outstanding.

The outstanding debt under the credit facilities bears an interest rate of SOFR plus 1.5 % to 2.25 % that is paid quarterly.

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Accounts Receivable

The allowance for credit losses on accounts receivable was $ 924 million an d $ 962 million as of December 31, 2025 and March 31, 2026, respectively.

The allowance for credit losses on accounts receivable was $ 924 million an d $ 995 million as of December 31, 2025 and June 30, 2026, respectively

Property and Equipment, Net

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December 31, 2025 As of

March 31, 2026

June 30, 2026

Technical infrastructure (1)

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Property and equipment, net $ 246,597 $ 321,212

(1) As of December 31, 2025 and March 31, 2026, approximately 60 % of technical infrastructure assets were comprised of servers and network equipment.

(1) As of December 31, 2025 and June 30, 2026, approximately 60 % of technical infrastructure assets were comprised of servers and network equipment.

The remaining balance was comprised of data center land and buildings and related assets.

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December 31, 2025 As of

March 31, 2026

June 30, 2026

Accrued fines and settlements (1)

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Noncontrolling Interests

Total noncontrolling interests (NCI) in our consolidated subsidiaries were $ 3.4 billion and $ 7.2 billion as of December 31, 2025 and March 31, 2026, respectively, of which $ 841 million and $ 1.8 billion were redeemable noncontrolling interests (RNCI) as of December 31, 2025 and March 31, 2026, respectively.

NCI and RNCI are included within additional paid-in capital.

Total noncontrolling interests (NCI) in our consolidated subsidiaries were $ 3.4 billion and $ 7.1 billion as of December 31, 2025 and June 30, 2026, respectively, of which $ 841 million and $ 824 million were redeemable noncontrolling interests (RNCI) as of December 31, 2025 and June 30, 2026, respectively.

NCI and RNCI are included within common stock and additional paid-in capital (APIC).

Net loss attributable to noncontrolling interests was not material for any period presented and is included within the "other" component of OI&E.

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Other comprehensive income (loss) 3,273 723 ( 1,323 ) 2,673

Balance as of March 31, 2025 $ ( 4,417 ) $ 262 $ 69 $ ( 4,086 )

Balance as of June 30, 2025 $ ( 1,807 ) $ 424 $ ( 744 ) $ ( 2,127 )

Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total

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Other comprehensive income (loss) ( 335 ) ( 614 ) 580 ( 369 )

Balance as of March 31, 2026 $ ( 2,884 ) $ 303 $ 401 $ ( 2,180 )

Balance as of June 30, 2026 $ ( 2,893 ) $ 64 $ 544 $ ( 2,285 )

The effects on net income of amounts reclassified from AOCI were as follows (in millions):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

AOCI Components Location 2025 2026 2025 2026

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Components of OI&E were as follows (in millions):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Interest income $ 1,050 $ 1,430 $ 2,051 $ 2,811

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Other income (expense), net $ 2,662 $ 97,983 $ 13,845 $ 135,699

(1) Interest expense is net of interest capitalized of $ 79 million and $ 265 million for the three months ended March 31, 2025 and 2026, respectively.

(1) Interest expense is net of interest capitalized of $ 92 million and $ 363 million for the three months ended June 30, 2025 and 2026, respectively, and $ 171 million and $ 628 million for the six months ended June 30, 2025 and 2026, respectively.

Acquisitions and Divestitures

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On March 11, 2026, we completed our acquisition of Wiz for $ 29.5 billion, after purchase price adjustments and excluding post combination compensation arrangements.

This acquisition represents an investment by Google Cloud to accelerate our capabilities in multicloud and artificial intelligence (AI)-driven security.

This acquisition represents an investment by Google Cloud to accelerate our capabilities in multicloud and AI-driven security.

Following the close of the acquisition, the financial results are included in our consolidated financial statements within the Google Cloud segment.

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Following the close of the acquisition, the financial results are included in our consolidated financial statements and are allocated to our segments.

The preliminary purchase price was allocated as follows (in millions):

The final purchase price was allocated as follows (in millions):

Property and equipment

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The transaction is expected to close in late 2026.

As of March 31, 2026, GFiber met the criteria for held for sale classification.

No impairment loss was recognized upon classification as held for sale and we ceased depreciation of the related long-lived assets.

Held for sale assets primarily consist of property and equipment of $ 6.8 billion, which is included in other current assets in our Consolidated Balance Sheet as of March 31, 2026.

GFiber meets the criteria for held for sale classification.

No impairment loss was recognized upon initial classification as held for sale and we ceased depreciation of the related long-lived assets.

Held for sale assets primarily consist of property and equipment of $ 7.1 billion, which is included in other current assets in our Consolidated Balance Sheet as of June 30, 2026.

The operating results of GFiber remain included within the Other Bets segment through the close of the transaction.

Goodwill and Intangible Assets

Changes in the carrying amount of goodwill for the three months ended March 31, 2026 were as follows (in millions):

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

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Foreign currency translation and other adjustments ( 33 ) ( 3 ) ( 560 ) ( 596 )

Balance as of March 31, 2026 $ 25,985 $ 31,498 $ 291 $ 57,774

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 March 31, 2026

As of December 31, 2025 As of June 30, 2026

Amount Accumulated

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Total intangible assets $ 2,662 $ ( 1,379 ) $ 1,283 $ 10,796 $ ( 1,691 ) $ 9,105

Amortization expense relating to intangible assets was $ 122 million and $ 178 million for the three months ended March 31, 2025 and 2026, respectively.

Expected amortization expense of definite-lived intangible assets held as of March 31, 2026 was as follows (in millions):

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

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In addition, we have commitments for certain energy service agreements to secure energy for data center usage, and certain content licensing agreements.

As of March 31, 2026, expected future fixed or minimum guaranteed commitments under these agreements were $ 232.7 billion.

We expect contractual commitments under the long-term supply agreements and content licenses to generally be paid through 2030.

The energy service agreements include terms ranging from two to 20 years, with payments through 2047, and generally include take-or-pay provisions for minimum quantities of energy supply and substantive termination fees.

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 August 2026.

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 March 31, 2026, our maximum potential amount of future payments under these guarantees was $ 9.0 billion, upon which we may receive certain assets.

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.

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However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period.

As of March 31, 2026, we did not have any material indemnification claims that were probable or reasonably possible.

As of June 30, 2026, we did not have any material indemnification claims that were probable or reasonably possible.

Legal Matters

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In September 2022, the General Court affirmed the EC decision but reduced the fine from € 4.3 billion to € 4.1 billion.

We subsequently appealed the General Court's affirmation of the EC decision with the European Court of Justice, which remains pending.

In 2018, we recognized a charge of $ 5.1 billion for the fine, which we reduced by $ 217 million in 2022.

We subsequently appealed the General Court's affirmation of the EC decision, which was denied by the European Court of Justice in July 2026.

The EC decision is now final.

In July 2026, we made a cash payment of $ 5.2 billion for the fine plus accrued interest.

• AdSense for Search:

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In January 2026, we appealed the final judgment and moved to pause implementation of certain remedies.

The court denied the motion to stay as premature, allowing Google to seek a stay until the scope of certain remedies are more defined.

In February 2026, the DOJ and state Attorneys General also appealed.

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In March 2026, we reached a settlement with Epic to seek modification of the remedies, implement certain changes regarding the operation of Google Play, and resolve certain other lawsuits Epic has filed regarding Google Play's business.

Following the settlement, we withdrew our petition to the US Supreme Court in March 2026, and Epic and Google filed a joint motion to modify the injunction in April 2026, which is currently pending before the court.

Following the settlement, we withdrew our petition to the US Supreme Court in March 2026, and Epic and Google filed a joint motion to modify the injunction in April 2026.

In July 2026, Epic and Google jointly withdrew the motion to modify the injunction, and Google is complying with the October 2024 remedies decision.

• European Digital Markets Act:

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In addition to these antitrust proceedings, private individual and collective actions that overlap with claims pursued by regulatory authorities are pending in the US and in several other jurisdictions, including across Europe.

Given the nature of these matters, we cannot estimate a possible loss.

We believe we have strong arguments against these open claims and will defend ourselves vigorously.

This includes private claims stemming from regulatory proceedings in which Google's liability has been fully determined and the remaining dispute concerns potential damages.

For example, in July 2026, the Stockholm Patent and Market Court issued a decision against Google in a private action brought by PriceRunner (a subsidiary of Klarna) relating to Google's display and ranking of shopping search results.

The Court awarded the plaintiff approximately $ 2.1 billion (awarded in multiple currencies) in principal damages plus accrued interest and costs, which we recognized in the second quarter of 2026.

We appealed the decision.

For other such matters, given their nature, we cannot estimate a possible loss.

We believe we have strong arguments against open claims and will defend ourselves vigorously.

We continue to cooperate with federal and state regulators in the US, the EC, and other regulators around the world.

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If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss.

Due to the inherent complexity and uncertainty of these matters and judicial process in certain jurisdictions, the final outcome may be materially different from our expectations.

Due to the inherent complexity

and uncertainty of these matters and judicial process in certain jurisdictions, the final outcome may be materially different from our expectations.

See Note 14 for further details regarding income tax contingencies.

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 mandatory convertible preferred stock has a par value of $ 0.001 per share and liquidation preference of $ 1,000 per share ($ 50 per depositary share).

Aggregate net proceeds were $ 19.0 billion which will be used for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute.

Gross proceeds were reduced by underwriting discounts and offering expenses, which were recorded as a reduction to preferred stock and APIC.

Dividends are cumulative at an annual rate of 6.25 % on the liquidation preference of $ 1,000 per share of mandatory convertible preferred stock and may be paid in cash, shares of common stock, or a combination of cash and shares of common stock, at the company’s election.

Dividends that are declared will be payable quarterly on February 15, May 15, August 15, and November 15 of each year, commencing on August 15, 2026 and ending on, and including May 15, 2029 with the record date being the first of the respective month.

Unless earlier converted, each outstanding share will automatically convert on the mandatory conversion date, which is on or about May 15, 2029.

The conversion rate for each share of our Series A mandatory convertible preferred stock will be between 2.2520 and 2.8160 shares of Class A stock, and Series B mandatory convertible preferred stock will convert into between 2.2740 and 2.8420 shares of Class C stock, depending on the applicable market value of our Class A and Class C stock upon conversion and subject to certain anti-dilution adjustments.

The applicable market value will be determined based on the average volume-weighted average price per share over the 20 consecutive trading day final averaging period ending immediately prior to the mandatory conversion date.

If a fundamental change occurs on or prior to May 15, 2029, holders of mandatory convertible preferred stock will automatically convert into Class A or Class C shares, as applicable, at a special fundamental change conversion rate and, under certain circumstances, receive a fundamental change dividend make-whole amount.

Other than during a fundamental change conversion period, at any time prior to May 15, 2029, holders may elect to convert at the minimum conversion rate, subject to certain anti-dilution and other adjustments.

The mandatory convertible preferred stock is not redeemable at the company’s election before the mandatory conversion date.

Holders of the mandatory convertible preferred stock will not have any voting rights, with limited exceptions.

Capped Call Transactions

In connection with the issuance of the 385 million Series A and Series B depositary shares, representing 19 million shares of mandatory convertible preferred stock, the company entered into privately negotiated capped call transactions with certain financial institutions.

The company paid an aggregate premium of $ 1.0 billion for these capped call transactions, which was recorded as a reduction to preferred stock and APIC.

The capped call transactions provide the company with the option to receive shares of Class A and Class C stock upon conversion of the mandatory convertible preferred stock.

The transactions have an initial cap price of $ 532.6704 per share for the Class A and $ 527.7974 per share for Class C, each representing a premium of 50.0 % over their respective public offering prices.

These transactions are intended to reduce the potential dilution to the company’s common stock upon conversion of the mandatory convertible preferred stock.

As the transactions are indexed to the company’s own stock and meet certain accounting criteria, the capped call options are recorded as a reduction of stockholders’ equity and are not accounted for as derivatives.

At-the-Market Program

On June 1, 2026, the company entered into an equity distribution agreement with certain sales agents party thereto, pursuant to which we may sell both our Class A and Class C stock having aggregate sales proceeds of up to $ 40.0 billion from time to time through an at-the-market offering program (the "ATM Program").

Subject to the terms and conditions of the agreement, the company may sell shares of Class A and Class C stock through the sales agents listed in the agreement in amounts and at times to be determined by the company.

In addition, we may elect to sell, through the sales agents or through others (whether acting as agent or principal), shares of our stock for forward settlement.

We are not obligated to sell any of our shares under the ATM Program.

The proceeds from offerings under the ATM Program, if any, are primarily intended to be used to meet tax obligations associated with employee equity grants.

As of June 30, 2026, we have not sold any shares under the ATM Program, and the full $ 40.0 billion remains available for future issuance.

Preferred and Common Dividends

In the three and six months ended June 30, 2026, total cash dividends on common stock were $ 1.3 billion and $ 2.5 billion for Class A, $ 184 million and $ 359 million for Class B, and $ 1.2 billion and $ 2.4 billion for Class C shares, respectively.

In April 2026, the company's Board of Directors declared a quarterly cash dividend on common stock of $ 0.22 per share, representing a 5 % increase from the previous quarterly dividend of $ 0.21 per share.

In July 2026, the company's Board of Directors declared a quarterly cash dividend of $ 12.15 per share on each of our Series A and Series B mandatory convertible preferred stock (equivalent to approximately $ 0.60 per each of our Series A and Series B Depositary Shares) and a quarterly cash dividend of $ 0.22 per share on our Class A, Class B, and Class C stock.

The mandatory convertible preferred stock dividend is payable on August 15, 2026 to stockholders of record for each of the company's Series A and Series B shares as of August 1, 2026, and the common stock dividend is payable on September 14, 2026 to stockholders of record for each of the company's Class A, Class B, and Class C shares as of September 7, 2026.

The company has declared a quarterly cash dividend in the current quarter, and intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board of Directors in its sole discretion.

Share Repurchases

In the three months ended March 31, 2026, there were no repurchases of the company's Class A or Class C shares.

In the three and six months ended June 30, 2026, there were no repurchases of the company's Class A or Class C shares.

In April 2025, the company's Board of Directors authorized a $ 70.0 billion share repurchase program for its Class A and Class C shares.

As of March 31, 2026, $ 69.5 billion remained available for Class A and Class C share repurchases.

As of June 30, 2026, $ 69.5 billion remained available for Class A and Class C share repurchases.

Repurchases may be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.

The repurchase programs do not have an expiration date.

In the three months ended March 31, 2026, total cash dividends were $ 1.2 billion for Class A, $ 176 million for Class B, and $ 1.1 billion for Class C shares, respectively.

In April 2026, the company's Board of Directors declared a quarterly cash dividend of $ 0.22 per share, representing a 5 % increase from the previous quarterly dividend of $ 0.21 per share.

The dividend is payable on June 15, 2026 to stockholders of record for each of the company's Class A, Class B, and Class C shares as of June 8, 2026.

Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share of Class A, Class B, and Class C stock (in millions, except per share amounts):

Three Months Ended March 31,

Net Income Per Common Share

We compute net income per common share of Class A, Class B, and Class C stock using the two-class method.

Basic net income per common share is computed using the weighted-average number of shares outstanding during the period.

Diluted net income per common share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period.

Potentially dilutive securities consist of restricted stock units (RSUs), other contingently issuable shares, and mandatory convertible preferred stock.

The dilutive effect of outstanding RSUs and other contingently issuable shares is reflected in diluted earnings per common share pursuant to the treasury stock method.

The dilutive effect of mandatory convertible preferred shares is reflected in diluted earnings per common share pursuant to the if-converted method.

The computation of the diluted net income per common share of Class A stock assumes the conversion of Class B stock, while the diluted net income per common share of Class B stock does not assume the conversion of those shares.

Net income available to common stockholders is calculated by adjusting net income to deduct accumulated and declared dividends on the mandatory convertible preferred stock.

In accordance with our certificate of incorporation, the rights, including the liquidation and dividend rights, of the holders of our Class A, Class B, and Class C stock are identical, except with respect to voting.

Furthermore, there are a number of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude our Board of Directors from declaring or paying unequal per share dividends on our Class A, Class B, and Class C stock.

Specifically, Delaware law provides that amendments to our certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a given class of stock must be approved by the class of stock adversely affected by the proposed amendment.

In addition, our certificate of incorporation provides that before any such amendment may be put to a stockholder vote, it must be approved by the unanimous consent of our Board of Directors.

Immaterial differences in net income per common share across our Class A, Class B, and Class C shares may arise due to the allocation of distributed earnings, which is based on the holders as of the record date, compared with the allocation of undistributed earnings and number of shares, which is based on the weighted-average shares outstanding over the periods.

The following tables set forth the computation of basic and diluted net income per common share of Class A, Class B, and Class C stock (in millions, except per share amounts):

Three Months Ended June 30,

Class A Class B Class C Consolidated Class A Class B Class C Consolidated

Basic net income per share:

Allocation of distributed earnings (cash dividends paid) $ 1,167 $ 171 $ 1,096 $ 2,434 $ 1,223 $ 175 $ 1,144 $ 2,542

Basic net income per common share:

Allocation of distributed earnings (cash dividends paid to common stockholders) $ 1,222 $ 178 $ 1,143 $ 2,543 $ 1,291 $ 184 $ 1,214 $ 2,689

Allocation of undistributed earnings 12,314 1,803 11,536 25,653 52,552 7,519 49,347 109,418

Net income available to common stockholders $ 13,536 $ 1,981 $ 12,679 $ 28,196 $ 53,843 $ 7,703 $ 50,561 $ 112,107

Number of shares used in per share computation 5,819 852 5,451 12,122 5,836 835 5,480 12,151

Basic net income per common share $ 2.33 $ 2.33 $ 2.33 $ 2.33 $ 9.23 $ 9.23 $ 9.23 $ 9.23

Diluted net income per common share:

Allocation of total earnings for basic computation $ 13,536 $ 1,981 $ 12,679 $ 28,196 $ 53,843 $ 7,703 $ 50,561 $ 112,107

Reallocation of total earnings as a result of conversion of Class B to Class A shares 1,981 0 0 _ (1)

7,703 0 0 _ (1)

Preferred stock dividends declared and accumulated (2)

0 0 0 0 47 0 39 86

Reallocation of undistributed earnings ( 88 ) ( 11 ) 88 _ (1)

( 700 ) ( 91 ) 700 _ (1)

Net income $ 15,429 $ 1,970 $ 12,767 $ 28,196 $ 60,893 $ 7,612 $ 51,300 112,193

Number of shares used in basic computation 5,819 852 5,451 12,122 5,836 835 5,480 12,151

Weighted-average effect of dilutive securities

Conversion of Class B to Class A shares outstanding 852 0 0 _ (1)

835 0 0 _ (1)

Restricted stock units and other contingently issuable shares 0 0 76 76 0 0 142 142

Conversion of preferred stock (2)

0 0 0 0 8 0 8 16

Number of shares used in per share computation 6,671 852 5,527 12,198 6,679 835 5,630 12,309

Basic net income per share $ 2.84 $ 2.83 $ 2.83 $ 2.84 $ 5.17 $ 5.17 $ 5.17 $ 5.17

Diluted net income per share:

Diluted net income per common share $ 2.31 $ 2.31 $ 2.31 $ 2.31 $ 9.12 $ 9.12 $ 9.11 $ 9.11

(1) Not applicable for consolidated net income per common share.

(2) Preferred dividends are added back and preferred shares are assumed to have converted to common pursuant to the if-converted method.

Six Months Ended June 30,

Class A Class B Class C Consolidated Class A Class B Class C Consolidated

Basic net income per common share:

Allocation of distributed earnings (cash dividends paid to common stockholders) $ 2,388 $ 350 $ 2,239 $ 4,977 $ 2,514 $ 359 $ 2,358 $ 5,231

Allocation of undistributed earnings 27,689 4,064 26,006 57,759 81,463 11,684 76,307 169,454

Net income available to common stockholders $ 30,077 $ 4,414 $ 28,245 $ 62,736 $ 83,977 $ 12,043 $ 78,665 $ 174,685

Number of shares used in per share computation 5,826 855 5,472 12,153 5,829 836 5,460 12,125

Basic net income per common share $ 5.16 $ 5.16 $ 5.16 $ 5.16 $ 14.41 $ 14.41 $ 14.41 $ 14.41

Diluted net income per common share:

Allocation of total earnings for basic computation $ 30,077 $ 4,414 $ 28,245 $ 62,736 $ 83,977 $ 12,043 $ 78,665 $ 174,685

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12,043 0 0 _ (1)

Preferred stock dividends declared and accumulated (2)

0 0 0 0 47 0 39 86

Reallocation of undistributed earnings ( 239 ) ( 31 ) 239 _ (1)

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Restricted stock units and other contingently issuable shares 0 0 92 92 0 0 141 141

Conversion of preferred stock (2)

0 0 0 0 4 0 4 8

Number of shares used in per share computation 6,681 855 5,564 12,245 6,669 836 5,605 12,274

Diluted net income per share $ 2.81 $ 2.81 $ 2.81 $ 2.81 $ 5.12 $ 5.11 $ 5.11 $ 5.11

(1) Not applicable for consolidated net income per share.

For the periods presented above, the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Amended and Restated Certificate of Incorporation of Alphabet Inc.

Holders of Alphabet unvested stock units are awarded dividend equivalents, which are subject to the same vesting conditions as the underlying award, and settled in Class C shares.

Immaterial differences in net income per share across our Class A, Class B, and Class C shares may arise due to the allocation of distributed earnings, which is based on the holders as of the record date, compared with the allocation of undistributed earnings and number of shares, which is based on the weighted average shares outstanding over the periods.

Diluted net income per common share $ 5.13 $ 5.13 $ 5.12 $ 5.12 $ 14.24 $ 14.24 $ 14.23 $ 14.24

(1) Not applicable for consolidated net income per common share.

(2) Preferred dividends are added back and preferred shares are assumed to have converted to common pursuant to the if-converted method.

Compensation Plans

Stock-Based Compensation

For the three months ended March 31, 2025 and 2026, total stock-based compensation (SBC) expense was $ 5.5 billion an d $ 7.2 billion, incl uding amounts associated with awards we expect to settle in Alphabet stock of $ 5.3 billion an d $ 6.5 billion, res pectively.

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 restricted stock units (RSUs), which include dividend equivalents awarded to holders of unvested stock, for the three months ended March 31, 2026 (in millions, except per share amounts):

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):

Shares Weighted-

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Forfeited/canceled ( 16 ) $ 180.00

Unvested as of March 31, 2026 321 $ 200.89

As of March 31, 2026, there wa s $ 62.6 billion of u nrecognized compensation cost related to unvested RSUs.

This amount is expected to be recognized over a weighted-average period of 2.9 y ears.

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 .

The following table presents provision for income taxes (in millions, except for effective tax rate):

Three Months Ended

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

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We are subject to income taxes in the US and foreign jurisdictions.

Significant judgment is required in evaluating our uncertain tax positions and det ermining our provision for income taxes.

The total amount of gross unrecognized tax benefits was $ 11.5 billion an d $ 13.4 billion, of which $ 9.7 billion and $ 11.6 billion, if recognized, would affect our effective tax rate, as of December 31, 2025 and March 31, 2026, respectively.

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.

Information about Segments and Geographic Areas

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the sale of apps and in-app purchases;

• Google Cloud includes infrastructure and platform services, applications, and other services for enterprise customers.

Google Cloud generates 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 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 devices, 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 and office facilities, are

managed centrally at a consolidated level.

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 and office facilities, are managed centrally at a consolidated level.

These costs, including the associated depreciation, are allocated to operating segments as a service cost generally based on usage, headcount, or revenue.

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The following table presents revenue, profitability, and expense information about our segments (in millions):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2026 2025 2026

Google Services $ 82,543 $ 94,540 $ 159,807 $ 184,177

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Other costs and expenses

5,281 9,021 9,952 16,008

Total Google Cloud costs and expenses

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Google Services and Google Cloud employee compensation expenses include the costs associated with direct and allocated employees.

Google Services and Google Cloud other costs and expenses primarily include direct costs, such as advertising and promotional activities, legal and other matters, and third-party services fees as well as allocated costs, such as technical infrastructure and office facilities usage costs.

Additionally, Google Services other costs and expenses include content acquisition costs, traffic acquisition costs (TAC), and device costs.

Google Services and Google Cloud other costs and expenses primarily include direct costs, such as advertising and promotional activities, inventory costs, legal and other matters, and third-party services fees as well as allocated costs, such as technical infrastructure and office facilities usage costs.

Additionally, Google Services other costs and expenses include content acquisition costs and TAC.

See Note 2 for further details relating to revenues by geography.

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December 31, 2025 As of

March 31, 2026

June 30, 2026

Long-lived assets:

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements