Alphabet Just Delivered 82% Cloud Growth. Why It Wasn't Enough
Yahoo Finance ·
Investors were eagerly anticipating Alphabet's ( GOOG -1.20% ) ( GOOGL -1.44% ) second-quarter earnings report on Wednesday, and the numbers did not disappoint. Alphabet nearly doubled revenue in the key cloud segment, with Google Cloud revenue up 82% to $24.8 billion. Even more impressive was operating income in the cloud segment, which more than tripled to $8.8 billion, thanks to the boom in AI infrastructure spending. Alphabet's overall numbers were strong as well, as revenue jumped 24% to $119.8 billion, well ahead of the consensus at $117 billion. Operating margin also expanded from 32% to 34%, translating into $40.8 billion in operating income. Despite those strong results, Alphabet stock was down after hours, losing as much as 5% before clawing back some of those losses.
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