Google DeepMind (Alphabet)

Refresh delta (since 2026-06-17)

1. Q2 2026: Alphabet revenue $119,796M, +24% YoY (+23% constant currency); operating income $40,770M, a 34% margin (Q2 2025: $96,428M and $31,271M, 32%) [8-KForm 8-KA filing for something that happened between reports and matters enough to tell shareholders now. Q2, quarter ended 2026-06-30]. Google Services revenue $94,540M (+15%), of which Search & other $63,271M (+17%), YouTube ads $11,055M (+13%), Network $7,303M (about −1%), subscriptions, platforms and devices $12,911M (+15%) [8-K Q2; estimate: $7,303M / $7,354M − 1].

2. Google Cloud: revenue $24,768M, +82% YoY (Q2 2025: $13,624M); operating income $8,814M (Q2 2025: $2,826M) [8-K Q2]. Cloud operating margin 35.6% against 20.7% a year earlier. The prior dossier's verdict cites Cloud at +63% and a $462B backlog. The 10-QForm 10-QThe quarterly version of the annual report. Lighter, and not audited. now reports revenue backlog (remaining performance obligations) of $519.5B at 2026-06-30, of which $513.9B is Google Cloud, with just over 50% expected to be recognized over the next 24 months [10-QForm 10-QThe quarterly version of the annual report. Lighter, and not audited., MD&A, Revenue Backlog]. That is $57.5B above the prior dossier's $462B.

3. Other segments: Google Services operating income $39,544M (Q2 2025: $33,063M); Other Bets operating loss $1,799M (Q2 2025: $1,246M); Alphabet-level activities, which the 8-K says primarily reflect shared AI research and development, were −$5,789M (Q2 2025: −$3,372M) [8-K Q2, segment table]. The prior dossier's framing puts DeepMind's costs in the Alphabet-level line; that line rose $2,417M YoY.

4. Net income and the equity-mark effect. Other income, net, was $97,983M (Q2 2025: $2,662M), "primarily the result of net unrealized gains on our equity securities"; the 10-Q puts net equity-security gains at $99.0B, "primarily related to unrealized gains in our equity securities portfolio from SpaceX and a private company." Net income available to common stockholders $112,107M, diluted EPS $9.11 (Q2 2025: $28,196M and $2.31) [8-K Q2; 10-Q, MD&A]. Operating income was $40,770M, so operating income is about 36% of that net income figure. The prior dossier's management question 9 and its key-risk line on earnings quality refer to unrealized equity gains.

5. Capex and cash flow. Capital expenditures $44,924M in Q2 (Q2 2025: $22,446M) and $80,598M for the six months (2025: $39,643M); operating cash flow $39.1B in Q2 and $84.9B for the half [8-K Q2, cash-flow lines; 10-Q, MD&A]. Free cash flow was −$5,855M in Q2 and $53,273M for the trailing twelve months, with Q1 2026 at $10,116M [8-K Q2, free-cash-flow reconciliation]. The 10-Q says only that 2026 capexCapital expenditureMoney spent on long-lived things — buildings, machines, servers — rather than on running costs. will "significantly increase" over 2025; the figures the prior dossier cites for 2026 capex ($180-190B or $175-185B) are web-sourced and neither appears in the 10-Q passages read. Depreciation was $13.6B for the half (2025: $9.5B) [10-Q].

6. Balance sheet, 2026-06-30 against 2025-12-31 [8-K Q2 balance sheet]: cash and marketable securities $242,474M (126,843); non-marketable securities $131,461M (68,687); inventory $9,991M (2,439); property and equipment, net $321,212M (246,597); goodwill $57,828M (33,380); intangibles $9,105M (1,283); total assets $921,983M (595,281); long-term debt $98,165M (46,547). Financing in the quarter: in June 2026 Alphabet issued Class A and Class C stock and mandatory convertible preferred stock for aggregate net proceeds of $49.6B ($19.0B of that preferred) and set up an at-the-market programme of up to $40.0B; it also issued senior unsecured notes for net proceeds of $20.3B in Q2 [8-K Q2; 10-Q Notes]. On 2026-08-10 it closed a $25B senior notes offering in ten tranches (floating and fixed, due 2028 to 2066, coupons up to 6.500%) [8-K notes]. The 10-Q says $69.5B of the $70.0B repurchase authorization remained at 2026-06-30 [10-Q]; the 8-K declares a $0.22 per share quarterly dividend on Class A, B and C stock and a quarterly preferred dividend [8-K Q2]. The prior dossier's management question 14 asks about returning cash while funding $180B+ capex.

7. Acquisitions closed in March 2026. The 10-Q states Wiz was completed on 2026-03-11 for $29.5B and Intersect on 2026-03-10 for $5.9B, both after purchase-price adjustments [10-Q, acquisitions notes]. The prior dossier's position-seed catalyst reads "Wiz ($32B) + Intersect ($4.8B) deal closes (regulatory approval), 2026", and its Lens 14 question 13 says "close in 2026"; the filings show both had already closed on the dossier's date, at different prices.

8. Antitrust and legal, per the 10-Q (2026-06-30):

• Search (D.D.C.). Final judgment entered December 2025; Google appealed in January 2026, the DOJ and states appealed in February 2026; a motion to pause certain remedies was denied as premature and Google may seek a stay once remedy scope is more defined [10-Q, legal matters]. The 10-Q gives no D.C. Circuit decision date.
• Ad tech (E.D. Va.). Remedies closing arguments were held in November 2025 and the company is "awaiting a final judgment"; the DOJ's remedy proposal includes structural remedies the 10-Q says could have a material adverse effect; the Texas state case follows the remedies decision; no loss estimate is given [10-Q, legal matters]. So the prior dossier's catalyst "E.D. Va. ad-tech final judgment" was still pending at 2026-06-30.
• European Commission. On 2026-07-02 the EC upheld its 2018 Android decision; the court-imposed fine and interest of $5.2B, previously accrued, was paid in July 2026. The EC's September 2025 ad-tech decision (€3.0B fine) is under appeal, pending [10-Q].
• PriceRunner. In Q2 Alphabet accrued $2.1B ($1.5B damages plus $581M interest and costs) after a Stockholm Patent and Market Court decision in a private action by PriceRunner, a Klarna subsidiary [10-Q, MD&A].

1. Operating metrics stated in the release (company claims, not audited): Gemini App 950 million monthly active users; Gemini models process 22 billion API tokens per minute; Gemini Enterprise used by nearly 90% of the Fortune 100; headcount 198,933 against 187,103 a year earlier [8-K Q2, CEO quote and supplemental table].

What held

• The prior dossier's central claim that AI is monetizing through Cloud strengthened on the filed numbers: Cloud revenue growth went from +63% (Q1) to +82% (Q2) and operating margin is 35.6% (facts 2 and 3).
• Both antitrust catalysts in the position seed are still unresolved on the filing date: the D.C. Circuit appeal of the Search judgment, and the E.D. Va. ad-tech judgment (fact 8). The 10-Q describes the ad-tech structural-remedy risk in the same terms the prior dossier used.
• Capex is rising: Q2 capex $44.9B and free cash flow negative for the quarter (fact 5), funded by $49.6B of equity, $20.3B plus $25B of notes (fact 6).
• Earnings quality: Q2 net income of $112.1B is dominated by unrealized gains, as the prior dossier's key risks warn (fact 4). Operating income, not net income, is the figure comparable with the prior dossier's operating-margin framing.
• The position seed's price anchor (~$313, target ~$390) is not touched by anything read here; it is carried unchanged below.