Alphabet Inc (NASDAQ:GOOG) reported second quarter results that exceeded Wall Street expectations, driven by accelerating growth in Google Cloud and continued strength across its search and advertising businesses.
The company reported revenue of $119.8 billion for the quarter ended June 30, up 24% from a year earlier and ahead of analysts' consensus estimate of approximately $116.8 billion.
Earnings per share came in at $9.11, well above the roughly $2.87 analysts had expected. The result was boosted by a significant unrealized gain on the company's equity investments, with other income totaling $98 billion during the quarter.
Google Cloud was a key driver of the outperformance, with revenue rising 82% year over year to $24.8 billion, surpassing the Street estimate of $22.3 billion. The company attributed the growth to demand for Google Cloud Platform across enterprise AI solutions, enterprise AI infrastructure, and its core cloud services.
Google Services revenue increased 15% to $94.5 billion, led by 17% growth in Google Search & other, 15% growth in subscriptions, platforms and devices, and 13% growth in YouTube advertising. YouTube advertising revenue totaled $11.06 billion, ahead of the $10.8 billion analysts had forecast.
Alphabet's operating income rose 30% from a year earlier, while operating margin expanded by two percentage points to 34%.
The company said the quarter marked its 12th consecutive period of double-digit revenue growth.
"Our AI investments are redefining what's possible across every part of our business," Alphabet CEO Sundar Pichai said in the earnings release.
"Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions. It's great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it."
Pichai added that the company's AI initiatives continued to gain traction across its businesses.
"We are seeing strong demand for our security solutions, and our new Gemini 3.5 Flash Cyber delivers highly cost-efficient performance at the frontier. And month over month, people turn to YouTube for major world events, with over 1.7 billion unique viewers watching World Cup-related videos during the FIFA World Cup 2026,” Pichai said.
"These outstanding results show that our differentiated, full stack approach to AI is delivering real, measurable value for consumers, customers, and our partners globally."
Shares of Alphabet traded down about 1% post-earnings.
