Alphabet reported $112.2 billion of net income on $119.8 billion of revenue last quarter. Operating income was $40.8 billion.

Alphabet's Q2 10-Q went up on July 23. Revenue $119.796 billion, operating income $40.770 billion, net income $112.193 billion. Net income landed at 94% of revenue, above the gross margin. The gap is one line. Non-operating income was $97.983 billion, and gains on equity securities inside it came to $99.031 billion, which means everything else below the operating line netted out slightly negative. Ads and cloud made under a third of pre-tax income. Amazon filed eight days later with the same shape. Revenue $200.606 billion, operating income $27.461 billion, other non-operating income $53.415 billion, net income $62.647 billion. Different tag, and a different book of holdings. Between them that is $151 billion of income from not operating, against $68 billion from operating. It has not been a smooth ramp. Alphabet's equity gains ran $9.8 billion in Q1 2025, $1.3 billion in Q2, $10.7 billion in Q3, $36.9 billion in Q1 2026, then $99.0 billion. Amazon's line went $1.1 billion, $10.2 billion, $15.6 billion, $53.4 billion over the same stretch. To be fair to the sell side, nobody was trying to forecast this. Alphabet printed $9.11 against $2.88 from twelve analysts, Amazon $5.75 against $1.83 from thirteen. A 216% beat mostly means the estimate was pointed at operating income, which is the sane thing to model. The marks are real under GAAP either way. If the holdings are worth that, they are worth that.