Alphabet's Q2 revenue soars with AI and Search powering the earning report

• Alphabet's strong growth, driven by AI and Search, continues in Q2, growing to $84.74 billion in revenue.

• Google's ad business remains robust, generating $64.6 billion in Q2, including $8.6 billion from YouTube ads.

• The decision to keep third-party cookies in Chrome to maintain the ad revenue stream solidifies Google's financial strength.

Google's parent company, Alphabet , made just under $85 billion in the last three months, an increase of 14% year-on-year. That's even higher than the company's record-breaking earnings in Q1 2024 , where it hit $80.54 billion in revenue. Google's Search business and Gemini AI are the main reasons behind the increased earnings report for the quarter.

Google Search brought in $48.5 billion in Q2 2024, while Google Cloud generated $10.35 billion in revenue and achieved $1 billion in operating profit — great numbers for a division that just got some bad news yesterday about its would-be Wiz acquisition . During the earnings call, Google CEO Sundar Pichai announced that the company's AI solutions for Cloud customers have "already generated billions in revenues and are being used by more than 2 million developers" (via The Verge ).

Google's net income for Q2 2024 is $23.6 billion, a significant increase from $18.3 billion for the same period in 2023. In April, Google's market cap also hit $2 trillion , a milestone that further reinforces the tech giant's position in the market.

Alphabet's strategic focus on AI and Search has paid off

Advertising, a cornerstone of Google's revenue, continues to perform strongly. In the first quarter of the year, Google generated $61.66 billion from selling ads, with YouTube ads alone bringing in $8.09 billion in revenue. In the second quarter of 2024, Google's ads business generated $64.6 billion in revenue.

This all comes despite Google's public issues with its AI Overviews tool, which was wrongly recommending that people do things like put glue on a pizza. Earlier this week, Google confirmed it had abandoned its plans to phase out third-party cookies in Google Chrome. The move comes after advertisers said losing access to third-party cookies will limit their ability to tailor ads to users. This decision is expected to maintain the current revenue streams from advertising, ensuring the company's financial strength and growth trajectory.