Google 2Q26: Should we eat or go to bed?

研报英文原文证据摘录

Google 2Q26: Should we eat or go to bed?

Mark Shmulik +1 917 344 8508 mark.shmulik@bernsteinsg.com 23 July 2026

the business a touch. We remain Market-Perform and take down our price target to $385/share (-$5). We value Alphabet

using a 50/50 combination of 2027e EV/ EBIT multiple of 24x (-4X) and a DCF using a WACC of 10% and a terminal growth

of 3.5%. We revise down our EV/EBIT multiple due to the lower quality of earnings. We consider Alphabet primarily a digital

advertising business and benchmark valuation to comparable peers in this industry set.

RESULTS

Revenues

Overall revenues comfortably beat Street expectations up +24% Y/Y [23% FxN] to $119.8B, with Search in line at +17% Y/Y

and Cloud growth accelerating to +82% Y/Y landing well above the Street. SP&D (Subscription, Platforms and Devices) grew

+15% Y/Y, YouTube advertising was up +13% Y/Y, while Network declined by a modest -1% Y/Y.

Advertising

Advertising revenues were up +14% Y/ Y to $82B with YouTube Ads and Network landing 2%-2.5% ahead of Street estimates

and Search in line.

• Search revenues grew +17% Y/Y to $63B with retail and finance driving the largest contributions. While reported growth

decelerated from 19% Y/Y in Q1, on a FxN basis Search growth was mostly consistent Q/Q. Search trends remain healthy,

supported by ongoing AI-driven enhancements that continue to improve user engagement and monetization. That said,

expectations for Search remain high, with growth comps increasingly difficult in the coming quarters and FX

tailwinds flipping to tailwinds.

• Market expansionary. Google continues to deepen the integration of AI into Search, unifying AI Overviews and AI Mode

into a single, seamless experience. AI-driven enhancements are contributing to higher user engagement and search

activity.