Alphabet shares rose nearly 1% in after hours trading Wednesday after the Google parent reported stronger than expected second quarter revenue, supported by accelerating growth across Search and Google Cloud.
Revenue increased 24% from a year earlier to $119.8 billion, beating the $117.1 billion FactSet consensus estimate and marking Alphabet’s twelfth consecutive quarter of double digit growth.
Google Services revenue rose 15% to $94.5 billion. Search and other revenue increased 17% to $63.3 billion, while YouTube advertising revenue climbed 13% to $11.1 billion.
Google Cloud recorded the strongest growth across Alphabet’s major businesses, with revenue surging 82% to $24.8 billion. The result exceeded Wall Street expectations of roughly $22.5 billion as demand increased for enterprise AI infrastructure, AI services, and core cloud products.
Cloud operating income more than tripled to $8.8 billion from $2.8 billion a year earlier. Total operating income increased 30% to $40.8 billion, while Alphabet’s operating margin expanded from 32% to 34%.
