Alphabet, the parent company of Google, exceeded expectations in its second-quarter earnings report, showcasing robust performance in its Search and Google Cloud segments. The tech giant posted revenue of $84.74 billion for the quarter, marking a 14% increase from the previous year and surpassing analyst forecasts from Visible Alpha. Net income surged to $23.62 billion, or $1.89 per share, compared to $18.37 billion, or $1.44 per share, a year prior.
Alphabet’s CEO, Sundar Pichai, attributed the company’s impressive results to sustained strength in Search and significant progress in Cloud services. Google Cloud generated $10.35 billion in revenue, exceeding expectations and reflecting a 28% year-over-year growth. This performance is indicative of a broader trend of increased IT expenditure.
CFO Ruth Porat highlighted that the revenue boost came from both Search and Cloud, with Google Cloud’s revenue surpassing $10 billion for the first time and achieving over $1 billion in operating profit. Porat emphasized the company’s commitment to investing in its highest growth areas, particularly as major tech firms advance in artificial intelligence (AI).
Following the earnings announcement, Alphabet’s stock saw a nearly 2% increase, trading at $184.89 in extended hours as of 4:45 p.m. ET. The company’s shares have appreciated by approximately 33% since the beginning of the year.
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