Alphabet beats on cloud revenue, posts strong Gemini usage

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorAlphabet beats on cloud revenue, posts strong Gemini usageOffers fresh evidence that the company’s massive AI investments are beginning to pay offAuthor of the article:Davey Alba and Julia Love You can save this article by registering for free here. Or sign-in if you have an account.Monthly active users of Alphabet Inc.'s Gemini app reached 950 million, well above estimates of 920 million. Photo by Gabby Jones/Bloomberg filesAlphabet Inc. reported second-quarter cloud revenue that far surpassed Wall Street’s expectations and strong gains in users of its Gemini artificial intelligence system, offering fresh evidence that the company’s massive AI investments are beginning to pay off.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Google parent said cloud sales totaled US$24.77 billion for the quarter ended June 30, a jump of 82 per cent over the same period last year. That was better than the US$22.46 billion that analysts expected, according to data compiled by Bloomberg. Monthly active users of its Gemini app reached 950 million, well above estimates of 920 million.“Gemini is now within a whisker of becoming Google’s third different one billion-user consumer AI product, alongside AI Overviews and AI Mode,” Emarketer principal analyst Nate Elliott said. “On the enterprise side, AI demand is driving enormous growth in the cloud business.”Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againAlphabet is the first major U.S. technology company to report earnings this season, offering an early glimpse of what’s to come. The tech sector has committed hundreds of billions of dollars to data centers and other AI offerings, but has yet to enter a period of measurable returns. Google is set to spend more than ever on capital expenditures this year to compete in the AI race, and investors have been waiting to see whether that spending is driving new growth or ultimately weighing on profitability.The company said Wednesday that capital expenditures were US$44.92 billion in the second quarter, eclipsing Wall Street’s expectations of US$44.15 billion.Total sales, excluding partner payouts, were US$103.6 billion in the second quarter, surpassing the US$101.07 billion average analyst estimate. Net income was US$9.11 a share, well above Wall Street’s forecast of US$2.90 per share. Sales from search advertising generated US$63.27 billion, just below estimates.Alphabet’s investment portfolio has also become a source of upside for the company, with stakes in companies including Anthropic PBC and Space Exploration Technologies Corp. Gains in the value of Alphabet’s investments totaled nearly US$100 billion for the quarter, sending net income soaring.Alphabet shares were up about 0.5 per cent in after-hours trading Wednesday. The stock closed at US$342.09 per share in New York.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.