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- Alphabet reported $119.8 billion in Q2 revenue, beating the $116.93 billion analyst estimate, as Google Cloud revenue jumped 82% year-over-year to $24.8 billion from $13.6 billion a year earlier
- Google Cloud easily surpassed analysts' $22.4 billion forecast, which had implied only 64% growth — an 18-point upside surprise that signals AI-driven enterprise demand is accelerating faster than Wall Street modeled
- Alphabet posted a 30% increase in operating income with operating margin expanding to 34%, while capital expenditure doubled year-over-year to $44.9 billion in the quarter
- Sundar Pichai attributed the results to AI investments driving strong demand for Google Cloud Platform's AI infrastructure and enterprise AI solutions
- Alphabet shares rose 0.4% in post-market trading to $343 after slipping 1.4% during the regular session, a muted reaction given the magnitude of the Cloud beat
Why it matters: Google Cloud's 82% growth rate blew past the 64% Wall Street had modeled, giving Alphabet a concrete AI monetization win as capex doubled to $44.9B to fund more infrastructure. Investors will weigh whether that spend level is sustainable against continued Cloud acceleration.
