Google Cloud success helps push Alphabet to record results

An angled close up of the Google sign logo at a Google office
(Image credit: Shutterstock/Jay Fog)

Google parent company Alphabet has revealed a healthy 14% year-on-year increase in revenue in its previous quarter driven by search and cloud successes.

According to the figures, the Google Cloud business played an instrumental role in this rise, achieving $10 billion in quarterly revenues and, for the first time ever, topping $1 billion in operating profit.

Moreover, total quarterly revenue stood at $84.7 billion, compared with $74.6 billion in the same period last year and $80.5 billion in the first quarter of 2024.

Google Cloud profit

The company’s overall earnings were largely in line with analyst expectations – revenue slightly exceeded the $84.2 billion predication. YouTube advertising revenue fell short of forecasts, reporting $8.66 billion compared with the anticipated $8.93 billion, however it still saw a one-billion-dollar increase in the space of a year.

Speaking about the company’s performance, Alphabet CEO Sundar Pichai commented: “Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud. We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.”

Google Cloud, which is largely made up of consumption-based fees and subscriptions received for Google Cloud Platform services and Google Workspace, accounted for 12.2% of the company’s revenue. For comparison, AWS accounted for 17.4% of Amazon’s total revenue last quarter, but the metrics indicate that Amazon’s cloud market dominance could be three times that of Google’s.

Despite strong performance, Alphabet shares dipped approximately 2% after the announcement as investors wait to see how the rest of Big Tech performed. 

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Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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