Alphabet’s AI integration boosts search revenue nearly 20% and doubles cloud backlog, easing cannibalization fears.
Alphabet Inc. (GOOG) closed at $372.47 on August 03, 2026, reflecting a $4.56 trillion market capitalization. The company’s Q2 2026 performance showed a 2.43% one-month return and a 90.70% gain over the past year, driven by AI advancements.
AI Overviews and AI mode contributed to a nearly 20% rise in search revenue, fueled by higher paid-click volume and a modest increase in revenue per click. Alphabet’s cloud division also saw strong growth, with its backlog nearly doubling and operating margins expanding to 33%.
Greenskeeper Asset Management noted Alphabet’s AI integration is enhancing, not displacing, its core search business, easing prior market concerns about chatbot cannibalization.