Markets GOOGL JUL 24, 2026

Google Cloud +82%, Intel Data Center +59% as AI infrastructure prints crush estimates

Alphabet Q2 revenue hit $119.8B with Cloud at $24.8B; Intel posted its fastest growth in 15 years as Data Center & AI surged 59% to $6.3B.

BY HENLEY MARRAST · MARKETS DESK

Alphabet reported $119.8 billion in Q2 2026 revenue on Wednesday, up 24% year over year and well past the $116.93 billion CNBC consensus, with Google Cloud accelerating to 82% growth and $24.8 billion in quarterly revenue. Intel followed on Thursday with $16.1 billion, up 25%, which the company called its strongest quarterly growth in more than 15 years. Two very different balance sheets, one narrative: the AI infrastructure trade isn’t slowing, it’s compounding.

Google Cloud’s growth curve is the tell. Cloud printed 48% growth in Q4 2025, 63% ($20.0 billion) in Q1, and now 82% in Q2. Segment operating income tripled to $8.8 billion from $2.8 billion a year earlier. CEO Sundar Pichai anchored the story in usage: Gemini models are processing 22 billion API tokens per minute, and nearly 90% of the Fortune 100 are on Gemini Enterprise. Consolidated operating income rose 30% to $40.8 billion, with margin expanding two points to 34%.

The financing tells you where this is going. In June, Alphabet raised $49.6 billion via equity issuance and another $20.3 billion in senior unsecured notes during the quarter, while reiterating $180 billion to $190 billion of 2026 capex. Companies with $40 billion quarterly operating income don’t casually tap public markets for $70 billion in a quarter unless the buildout schedule demands it.

Intel’s numbers rhymed. Data Center and AI revenue surged 59% to $6.3 billion; Client Computing rose 13% to $8.9 billion; adjusted EPS of 42 cents doubled the 21-cent consensus. The GAAP line showed an $11 billion net loss driven by a $12.5 billion mark-to-market charge on escrowed shares tied to the CHIPS Act agreement, an accounting artifact rather than an operating signal. Intel said data center orders are outpacing capacity. CEO Lip-Bu Tan framed it directly: “AI is driving unprecedented demand for compute.” CFO Dave Zinsner said the company is “meaningfully increasing” investment in equipment, clean room space, and substrates.

UBS now projects the four largest hyperscalers will spend $673 billion on 2026 capex, a 76% jump. That capital has to route through applications to earn its return, which is why the enterprise-AI layer, Glean, Dust, and LemonLime among them, is where hyperscaler compute becomes actual SMB workflow. The infrastructure side just re-rated. The application layer is next.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.