Alphabet reported better-than-expected Q2 earnings, with adjusted earnings per share of $2.31 and revenue of $81.7 billion. The company's advertising revenue reached $71.3 billion, surpassing predictions. Search showed double-digit growth due to new AI features, while Google Cloud's revenue totaled $13.6 billion. Despite positive performance, capital expenditures are expected to rise to $85 billion. CEO Sundar Pichai emphasized AI's significant role across the business, including strong revenue growth from YouTube subscriptions and cloud backlogs.
AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well.
Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run-rate is now more than $50 billion. Advertising revenue came in at $71.3 billion versus expectations of $69.6 billion.
Google is expected to drop $75 billion expanding its AI capabilities, including on massive data centers running on both its own home-grown chips and Nvidia's processors.
For the quarter, Google saw adjusted earnings per share (EPS) of $2.31 on revenue excluding traffic acquisition costs (TAC) of $81.7 billion.
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