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Key Takeaways
- Google parent Alphabet reported better-than-expected revenue and earnings for the second quarter.
- The tech giant said the strong results were driven by search and Google Cloud.
- Alphabet CFO Ruth Porat said the company will invest in its “highest growth opportunities.”
Google parent Alphabet ( GOOGL ) reported stronger-than-expected results for the second quarter, driven by search and Google Cloud.
The company reported second-quarter revenue of $84.74 billion, up 14% year-over-year, and above analysts’ estimates compiled by Visible Alpha. Net income of $23.62 billion or $1.89 per share rose from $18.37 billion or $1.44 per share a year earlier.
Strong Performance Driven by Google Cloud, Search
Alphabet CEO Sundar Pichai said the company’s “strong performance this quarter highlights ongoing strength in Search and momentum in Cloud.” Google Cloud revenue was $10.35 billion, above analysts’ expectations and representing more than 28% growth from the year-ago period, as the company benefits from increased IT spending .
Revenue growth was “driven by Search as well as Cloud, which for the first time exceeded $10 billion in quarterly revenues and $1 billion in operating profit,” Alphabet CFO Ruth Porat said, adding that the company will “invest to support [its] highest growth opportunities,” as big tech companies invest in artificial intelligence (AI) .
Alphabet shares were up close to 2% at $184.89 in extended trading as of 4:45 p.m. ET following the release. The stock has gained close to one-third of its value since the start of the year.