Alphabet's Q2 revenue beats estimates on Cloud, Search strength
Outlook
- Company did not provide specific financial guidance for the current or future periods
Overview
- U.S. search and cloud giant's Q2 revenue rose 24% yr/yr, beating analyst expectations
- EPS surged 294% to $9.11, driven by net unrealized gains on equity securities
- Company declared quarterly dividends for both preferred and common shares
Result drivers
- Google Cloud growth - Google Cloud revenue rose 82%, driven by demand for AI infrastructure, enterprise AI solutions, and core GCP services
- AI adoption - Company cited wide adoption of Gemini AI models and applications, including strong enterprise and consumer uptake, as a key driver
- Search and YouTube ads - Google Services revenue rose 15%, led by 17% growth in Search and 13% in YouTube ads, with AI features driving Search query growth
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $119.79 bln | $116.93 bln (38 Analysts) |
