Alphabet beats by $6.23, beats on revs
- Reports Q2 (Jun) earnings of $9.11 per share, $6.23 better than the FactSet Consensus of $2.88; revenues rose 24.2% year/year to $119.8 bln vs the $117.07 bln FactSet Consensus.
- Google Services revenues increased 15% to $94.5 billion, led by 17% growth in Google Search & other, 15% in Google subscriptions, platforms, and devices, and 13% in YouTube ads.
- Google Cloud saw a meaningful acceleration in growth as revenues increased 82% to $24.8 billion ($22.24 bln CNBC estimate), led by an increase in Google Cloud Platform across enterprise AI Solutions and enterprise AI Infrastructure, as well as core GCP services
- Consolidated Alphabet operating income increased 30% and operating margin expanded by 2 percentage points to 34%.
- CapEx $44.9 bln versus $35.7 bln in Q1 (in line with CNBC estimates).
- Sundar Pichai, CEO of Google and Alphabet, said: "Our AI investments are redefining what's possible across every part of our business. 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. We have exciting momentum across the board. Our popular AI features are driving Search query growth. Gemini models now process 22 billion API tokens per minute and the Gemini App has 950 million monthly active users. 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."