Google Search revenue grew 17% year over year to $63.3 billion in the second quarter, down from 19% in the first — the first slowdown in a year. The dip ended a four-quarter run of accelerating growth, though a two-year comparison suggests underlying demand held steady. Alphabet's total revenue still rose 24%, led by 82% growth at Google Cloud.
Google Search & other revenue grew 17% year over year to $63.3 billion in the second quarter, down from 19% in the first quarter. That snapped a streak of four consecutive quarters of accelerating Search growth. Investors largely looked past the figure, fixing instead on a $99 billion paper gain on Alphabet's equity stakes and a raised capital spending plan.
The end of a four-quarter streak
Search growth had climbed from 10% in the first quarter of 2025 to 12%, 15%, 17%, and then 19% in the first quarter of 2026. The second quarter's 17% snapped that streak. Yet 17% matched the fastest rate Search posted in any quarter of 2025, for a line generating more than $63 billion a quarter.
A tougher comparison, not weaker demand
The comparison math complicates the slowdown story. A year earlier Search lapped 10% growth; last quarter it lapped 12%.
Stacking the two years together, growth came to about 31% over the two-year period in both the first and second quarters of 2026. On that basis, the deceleration looks more like a tougher comparison than a change in demand.
Management pointed the same way. According to Alphabet's second-quarter earnings release, CEO Sundar Pichai said: "Our popular AI features are driving Search query growth". He added that the Gemini app now has 950 million monthly active users.
The broader quarter
The rest of the report cushioned the Search figure. Alphabet's total revenue rose 24% year over year to $119.8 billion, its 12th consecutive quarter of double-digit growth.
Google Cloud revenue accelerated to 82% growth, reaching $24.8 billion, and the segment's operating margin expanded to 35.6% from 20.7% a year earlier. YouTube ads grew 13% to $11.1 billion, and subscriptions grew 15%.
The market's attention stayed on spending. Shares fell about 7% on Thursday after Alphabet lifted its capital spending plan to a range topping out at $205 billion this year. The metric now has investors' attention, and the third quarter will lap a 15% comparison — harder than last quarter's 12%.
Source: The Motley Fool
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