$GOOGL is down ~7% after hours. But look at what Google Cloud just did.
Cloud revenue DOUBLED in one year: $15.2B → $30.7B (+103%).
Cloud operating income more than TRIPLED: $3.6B → $11.1B. That's a 36% margin.
Cloud alone delivered about 62% of Alphabet's entire revenue growth this quarter. Google says TPU system sales were a meaningful contributor.
So why is the stock down?
Total revenue of $127.6B came in slightly below expectations. EPS was dragged down by an $8.7B loss on equity holdings. And capex more than doubled to $51.4B, which pushed free cash flow to -$9.1B.
The headline numbers look messy. The AI business underneath is accelerating faster than almost anything at this scale.
Together with $MSFT tonight (Azure +48%), that's two of the biggest AI spenders showing the spending is turning into real revenue and profit.
Cloud revenue DOUBLED in one year: $15.2B → $30.7B (+103%).
Cloud operating income more than TRIPLED: $3.6B → $11.1B. That's a 36% margin.
Cloud alone delivered about 62% of Alphabet's entire revenue growth this quarter. Google says TPU system sales were a meaningful contributor.
So why is the stock down?
Total revenue of $127.6B came in slightly below expectations. EPS was dragged down by an $8.7B loss on equity holdings. And capex more than doubled to $51.4B, which pushed free cash flow to -$9.1B.
The headline numbers look messy. The AI business underneath is accelerating faster than almost anything at this scale.
Together with $MSFT tonight (Azure +48%), that's two of the biggest AI spenders showing the spending is turning into real revenue and profit.