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Google Cloud Leaves IBM in AI Dust as Revenue Trends Diverge

Guavy AI Editorial Team
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IBM
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Alphabet and IBM have released their Q2 2026 earnings reports, showcasing diverging revenue trends in the AI sector. Alphabet's revenue soared 24% year-over-year to $119.8B, while IBM's revenue grew just 1% to approximately $17.2B.

The standout performer was Google Cloud, which generated $24.8B in Q2 2026, an 82% increase from the same period last year. This figure eclipses IBM's total quarterly revenue for the same quarter.

IBM's software segment saw a modest 5% growth, but its infrastructure segment declined by 7%. CEO Arvind Krishna highlighted quantum computing as a long-term growth driver, with revenue contributions anticipated between 2028 and 2029.

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