GOOGL · Q2 FY2026
Alphabet Inc. Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $119.80B | $96.43B (yr ago) | Beat |
| EPS | $9.11 | $2.31 (yr ago) | Beat |
| Free Cash Flow | -$5.86B | $5.30B (yr ago) | Miss |
| Gross Margin | Not meaningful | Not meaningful (yr ago) | Miss |
| Operating Margin | 34.0% pre-tax margin | 32.4% pre-tax margin (yr ago) | Beat |
What changed
Revenue increased 24.2% year over year to $119.80B, while the supplied pre-tax margin expanded 1.6 percentage points to 34.0%. EPS rose to $9.11 from $2.31, but quarterly free cash flow swung by $11.16B to negative $5.86B as capital deployment accelerated.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We initiate fair value at $338.50 per share; the stronger revenue and pre-tax margin are offset by negative quarterly free cash flow and insufficient disclosure to determine how repeatable the EPS increase is.