San Francisco, California – Alphabet, the parent company of Google, reported second-quarter earnings and revenue that exceeded expectations on Tuesday. The company saw improvements in operating margins, leading to a rise in Google’s stock price. Revenue growth in the search advertising sector and cloud computing unit outperformed predictions, though YouTube fell short.

After markets closed, Google’s earnings were reported at $1.89 per share, a 31% increase from the previous year. Total revenue also increased by 14% to $84.74 billion. Analysts had forecasted earnings of $1.84 per share on revenue of $84.22 billion.

Despite the positive results, some analysts noted that the second-quarter results were not as impressive as the first quarter in terms of beating expectations. Jefferies analyst Brent Thill mentioned that the results did not exhibit the same level of strength as seen in the previous quarter.

Google’s stock market performance reflected the positive earnings report, with the stock rising over 2% in extended trading, reaching near $185.55. Prior to the earnings announcement, Google’s shares had already seen a 32% increase in 2024.

In addition to the strong financial performance, Google reported higher than expected capital spending, particularly in the search advertising sector and cloud computing division. Despite missing estimates in YouTube ad revenue, the company surpassed expectations in cloud-computing revenue.

Investors have been closely monitoring Google’s operating expenses and margins, especially with the increased investments in artificial intelligence. Operating margins improved to 32% from 29% the previous year, surpassing estimates. Moreover, capital spending in the second quarter exceeded consensus estimates, indicating a commitment to future growth initiatives.

Google’s stock buybacks reached a record $15.68 billion in the second quarter, surpassing the amount spent in the previous quarter. With a Composite Rating of 98 out of 99, Google continues to be a top player in the market, drawing attention from investors and analysts.

Moreover, the company’s upcoming change in leadership with the appointment of a new chief financial officer, Anat Ashkenazi, on July 31, adds another element of interest to Google’s future trajectory. As Google remains a key player in the artificial intelligence sector, its strategic investments and financial performance will continue to be closely watched by stakeholders and industry experts.