Newsletter
Google’s parent company Alphabet reported its second quarter numbers that exceeded Wall Street expectations.
By the numbers:
Revenue: $96.43 billion vs. $94 billion expected
Earnings per share: $2.31 vs. $2.18 expected
What sparked: the company’s overall revenue grew 14% YoY, higher than the 10.9% wall street expected.
Alphabet's net income rose to $28.2 billion, marking a 20% jump from last year. The company is doubling down on AI, with plans to spend even more on it in 2025 than previously expected.
CEO Sundar Pichai said that AI is fueling growth across the board, positively impacting every part of the business. Search saw double-digit revenue growth, new AI-powered features are performing well, and Google Cloud continues to deliver strong gains in revenue, backlog, and profitability.
To support this momentum, especially in its Cloud business, Google is increasing its capital expenditure plans from $75 billion to $85 billion.
Zoom out: while Google trails Amazon and Microsoft in cloud, its AI edge is driving major client wins. As Big tech doubles down on AI and cloud, Alphabet’s bold bets signal a shift, AI is no longer a side project, it’s the next growth engine.
In some other news: Google has asked the Supreme Court to review a ruling that went against it in March. The case involves India’s competition watchdog, which said Google was misusing its power through unfair Play Store policies. Google is now challenging that decision, hoping to overturn it.
