Overview
- Alphabet reported quarterly revenue up about 25% to $127.6 billion but missed Wall Street expectations, and the stock fell roughly 8–9% in after‑hours trading following the results Wednesday.
- Net income declined about 25% to $26.2 billion, a drop the company said was driven largely by valuation changes on investments such as stakes in SpaceX.
- Google Search ad revenue rose about 12% to $63.35 billion, below analysts’ forecasts of roughly $65 billion, a sign that core ad monetization has slowed even as query volumes grow.
- Google Cloud revenue more than doubled to $30.7 billion and the company said the Gemini app reached one billion users, but Alphabet reported about $51 billion in quarterly capital spending as it ramps AI infrastructure and guided much higher full‑year infrastructure outlays.
- Investors will now watch competitor cloud reports from Microsoft and AWS and look for evidence that AI products convert rising usage into sustainable ad or subscription revenue while near‑term profit pressure persists.