Alphabet Posts Cloud Sales Beat, Slight Miss on Search Revenue
Google Cloud revenue climbed 82% to $24.8 billion as Alphabet said nearly 1 billion people now use its AI models.
- On Wednesday, Alphabet reported second-quarter revenue of $119.8 billion, a 24% annual increase surpassing Wall Street projections of $117 billion and marking its 12th consecutive quarter of double-digit growth.
- Google Cloud revenue surged 82% to $24.8 billion, beating estimates of $22.4 billion, with operating income tripling to $8.8 billion driven by enterprise demand for AI products and infrastructure.
- Alphabet CEO Sundar Pichai stated Gemini now has 950 million monthly active users, while the company reported $44.9 billion in capital expenditures, doubling its prior-year figure to support AI scaling.
- Shares of Alphabet fell around 3% following the earnings report, though Deepwater Asset Management analyst Gene Munster cited the Google Cloud beat as a "massive beat" suggesting potential recovery.
- Earlier estimates indicated Amazon, Microsoft, and Meta would spend up to $750 billion this year on AI infrastructure, placing Alphabet within a competitive high-investment cycle to match growing product demand.
23 Articles
23 Articles
Alphabet, Google's controller, released mixed results for the second quarter this Wednesday. The revenue from the cloud computing division (Google Cloud) exceeded Wll Street's expectations, but the performance of the company's main business, advertising in searches, was slightly below expected, increasing investors' concerns with high spending on artificial intelligence. Google Cloud's revenue totaled $24.77 billion in the quarter ended June 30,…
The focus on artificial intelligence and high investment in data centers are driving the business. Google Cloud's revenue increased by 82 percent.
The Seattle Times
Google’s Q2 earnings of $112.11B beat Wall Street’s expectations on AI boom
Google parent company Alphabet Inc. posted stronger-than-expected results for its second quarter, a sign that it’s massive artificial intelligence spending spree is paying off so far.
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