Yandex Q2 2026: Revenue Growth Decelerates to +16.2% but EBITDA More Than Doubles

Yandex reported Q2 2026 revenue of RUB 386.3 bn, up +16.2% y/y, while adjusted EBITDA more than doubled to RUB 120.6 bn (+109.6% y/y) and net profit surged +297.8% y/y to RUB 64.5 bn. Revenue growth decelerated from +18.8% in H1 2026 (and +22% in Q1 2026 per the Q1 release) to +16.2% in Q2, but EBITDA growth accelerated sharply from +82.2% in H1 2026 to +109.6% in Q2, underscoring a powerful margin inflection.

Q2 2026 y/y growth: headline metrics

What drove the result

The profit surge was driven by the Cities segment (ride-hailing, e-commerce, food), which turned highly profitable in Q1 2026 with adjusted EBITDA up +161% y/y and margin expanding to 10.2% from 4.6%. Personal services (Plus, entertainment) also swung to positive EBITDA, while B2B Tech grew revenue +36% y/y. Search & AI revenue declined 1% y/y in Q1 2026, confirming diversification away from pure-search ads. Group adjusted EBITDA margin expanded +3.7 pp to 19.7% in Q1 2026, and the Q2 EBITDA margin of 31.2% (120.6/386.3) suggests further sequential improvement.

Key figures

Outlook

The company did not provide new guidance in the Q2 release. However, the Q1 2026 release highlighted a proposed buyback of up to RUB 50 bn over two years and a dividend of RUB 110 per share for FY 2025 (total ~RUB 42 bn), approved on 14-Apr-2026. These capital returns, combined with the strong EBITDA trajectory, support the investment case. Watch for further margin expansion in Cities and a potential recovery in Search & AI ad revenue.

The Q2 print confirms Yandex's transition from a search-ad-driven story to a diversified, high-margin platform. While revenue growth is decelerating, the profit and EBITDA inflection is dramatic. The stock reaction will likely focus on the sustainability of the margin gains and the pace of revenue growth in the coming quarters.