Google parent company Alphabet reported second-quarter results that aligned with analyst expectations on revenue and earnings but fell short on YouTube advertising revenue. Alphabet shares dipped about 2% in after-hours trading. The company reported earnings of $1.89 per share, surpassing the expected $1.84 per share, and revenue of $84.74 billion, slightly above the anticipated $84.19 billion. YouTube advertising revenue reached $8.66 billion, missing the projected $8.93 billion, while Google Cloud revenue hit $10.35 billion, beating the $10.20 billion estimate. Traffic acquisition costs (TAC) were $13.39 billion, lower than the expected $13.54 billion.

Alphabet's revenue increased 14% year-over-year, driven by search and cloud, which exceeded $10 billion in quarterly revenues and achieved $1 billion in operating profit for the first time. Ad revenue grew to $64.62 billion, up from $58.14 billion last year, indicating steady growth in Google's advertising business despite slower growth compared to the first quarter due to rising inflation and interest rates. YouTube ad revenue, though below estimates, still grew to $8.66 billion from $7.66 billion in the year-ago quarter, facing stiff competition from platforms like TikTok. Net income rose to $23.6 billion, or $1.89 per share, compared to $18.4 billion, or $1.44 per share, a year ago. Alphabet's "Other Bets" unit, including Waymo, generated $365 million, up from $285 million last year. CFO Ruth Porat announced a new $5 billion multiyear investment in Waymo. During the second quarter, Waymo expanded its service to all San Francisco users, marking its second citywide rollout after Phoenix in 2020. CEO Sundar Pichai highlighted the company's strong performance, emphasizing ongoing strength in Search and Cloud and innovation in AI technology.