Google parent Alphabet (GOOG, GOOGL) reported its second quarter earnings after the bell on Wednesday, beating Wall Street’s expectations on the top and bottom lines.
Shares were flat following the announcement.
For the quarter, Alphabet saw earnings per share of $9.11 on revenue of $119.8 billion. Analysts were anticipating EPS of and revenue of $116.9 billion.
Google’s cloud platform brought in $24.77 billion, above an expected $24.56 billion, while advertising came in at $81.63 billion. Analysts were looking for $81.12 billion.
“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,” CEO Sundar Pichai said in a statement.
Remaining performance obligations (RPOs), or contracts that Google still has to deliver on, hit $514 billion. Wall Street analysts were projecting $488.1 billion.
Investors have recently pulled back on the AI trade as they continue to digest massive spending on data centers and chips to power their AI platforms. At the same time, tech companies have repeatedly stated that they are capacity-constrained, with demand for computing power outstripping available supply.
Alphabet’s Google, like its AI rivals, is also under constant pressure to release ever more powerful AI models. Any delay could give a challenger the space it needs to outmaneuver the competition.
According to Bloomberg, Google has delayed its Gemini 3.5 Pro model over concerns related to its capabilities compared to other leading models.
Google, however, pushed back on the report.
“We’re shipping quickly across a wide range of models while keeping them highly cost-effective for customers,” a spokesperson told Yahoo Finance. “We’re currently testing 3.5 Pro, an upgraded Flash model, and other models with partners, and we’re productively engaged with the US government.”
Alphabet stock has fared better than that of its competitors, rising roughly 4% over the past three months, though shares are off their 52-week high.
Amazon (AMZN) stock has been about flat over the past three months, while Meta (META) has declined nearly 6%. Microsoft (MSFT) stock is off 5%.
Alphabet also got a boost on Monday after The Information reported Google is developing a new chip that could increase efficiency when running Gemini. The chip, codenamed Frozen v2, would include bits of Gemini, cutting processing time.
Email Daniel Howley at [email protected]. Follow him on X at @DanielHowley.
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