Alphabet knocks down the income expectations, increases the costs

Alphabet On Wednesday, the results of the second quarter, which won profits and profits, stated that the company stated that in 2025 it would lead to capital investments for $ 10 billion.

The company’s shares increased by more than 3% in an hour.

Here’s how the company did, compared to the estimates of analysts interviewed by LSEG:

• Income: 96.43 billion against $ 94 billion estimated
• Profit per share: 2.31 dollars against $ 2.18 calculated

Wall -Rate also looks several other numbers in the report:

• YouTube’s income: $ 9.8 billion vs. $ 9.56 billion, reports Sheetraccount
• Google Cloud Revenue: 13.62 billion dollars Vs. 13.11 billion dollars, Streetaccount reports
• Costs on the acquisition of traffic (TAC): $ 14.71 billion against $ 14.18 billion, Stretaccount reports

The company’s total income increased by 14% a year, higher than 10.9% Wall Rate.

The alphabet will spend more on artificial intelligence in 2025 than intended.

In February, the company stated that it was expected invest $ 75 billion in capital costs in 2025 as it continues to expand its AI strategy. It was already above $ 58.84 billion, waiting for Wall -Rate at the time.

The company increased this figure on Wednesday to $ 85 billion, saying it raises it from “strong demand for our cloud goods and services”. The company expects to further increase the capital expenses in 2026, said Alphabet Financing Chief Anat Ashkenazi on Wednesday’s income.

The search and advertising units of the alphabet still showed growth in the second quarter, despite the heating of the AI contest. During the quarter, the company’s search unit brought $ 54.19 billion, and its advertising profit increased to $ 71.34 billion – about $ 10.4% compared to $ 64.61 billion a year before.

The company reported a profit of $ 13.62 billion for its business, which is 31% compared to a year ago. Google’s YouTube revenues amounted to $ 9.8 billion, which was expected by Wall Rate.

The net income of the alphabet increased to $ 28.20 billion – by 20% compared to the previous year.

The company said its “other rates” segment, which includes its self-governing car Waymo and Life Sciences, brought $ 373 million in comparison with $ 365 million a year ago. Other rates reported $ 1.25 billion, compared to $ 1.13 billion a year ago.

AI AI Reviews, AI Google search product, which summarizes the search results, now has more than 2 billion monthly users in more than 200 countries and territories, said Alphabet Sundar Pichai on Wednesday. This is compared to 1.5 billion users monthly in the past quarter.

Pichai said the Gemini app, which has AI Chatbot, has more than 450 million monthly active users.

In total, Ashkenazi said, the total operating costs increased by 20% to $ 26.1 billion. The biggest growth engine was the cost of legal and other issues, which are partly paid by $ 1.4 billion related to the settlement, she said on a call call on Wednesday. Texas Prosecutor General Ken Pokstan announced $ 1.37 billion in May settlement The Google is related to the privacy law trial, it was made against the company in 2022.

Ashkenazi said that the third quarter of Alphabet’s income “can see the tail wind” for a number of reasons. This includes a negative impact on advertising “strong US elections” at the end of 2024, especially on YouTube, she said.

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