Alphabet 's revenues reached $84.7 billion, up 14% on the previous year. Two segments were particularly prolific: Google Search and the considerable momentum of Google Cloud. For the first time, Google Cloud exceeded $10 billion in quarterly revenues, generating an operating profit of $1 billion.

For Google Search, the growth is the result of increased search queries, increased spending by advertisers and the growing use of mobile devices by users.

The widespread adoption of generative artificial intelligence technology has boosted Alphabet's Cloud business. The company reported that its infrastructure and generative AI solutions for Cloud customers have generated billions in revenue and are used by over 2 million developers.

Advertising and YouTube: Mixed performances

Google's advertising revenues reached $64.6 billion, up from $58.1 billion the previous year. However, advertising revenue growth slowed compared with the start of the year. In particular, YouTube's advertising revenues, although up to $8.7 billion, fell short of analysts' forecasts.

Expenses up

However, Alphabet also reported an increase in spending, with total costs and expenses reaching $57.3 billion, up from $52.8 billion the previous year. This was partly due to increased investment in technical infrastructure and research and development spending.

These include investments in servers for computing needs, storage, research including AI, and the construction of land and buildings for data centers.

Expanding margins but cautious forecasts

Despite the increase in spending, Alphabet managed to improve its operating margins from 29% to 32% year-on-year. However, the company warned that third-quarter margins could be affected by increases in depreciation and expenses linked to higher levels of investment in technical infrastructure.