Google-parent Alphabet reported strong revenue growth for the quarter ending in June, as its cloud computing business grows and its core digital advertising business stabilizes.
Alphabet reported revenue of $74.6 billion, marking a 7% jump compared to last year and beating Wall Street’s estimates. The company also reported net profit of $18.4 billion, also beating analysts’ estimates.
Shares for Alphabet surged more than 7% in after-hours trading following the results.
Google’s advertising business generated revenue of $58.14 billion, up from $56.29 billion in the prior year. Google’s lucrative Cloud business reported revenue of $8.03 billion, marking a nearly 28% jump compared to last year.
The second-quarter earnings report comes on the heels of a brutal 2022 for the tech giant, marked by steep cost-cutting amid broader macroeconomic uncertainty that hit the tech sector particularly hard. This year has, so far, brought some reprieve to Google.
The strong results could give Google more “room to focus” on “its expansion in the AI field,” Thomas Monteiro, a senior analyst at Investing.com, said in a note Thursday evening.
Like other tech companies, Google has invested heavily in recent months to develop and deploy a new crop of AI tools into some of its core products.
