Sundar Pichai reports 24% revenue growth for Alphabet as AI investments drive strong second-quarter results
Alphabet Inc. reported a strong fiscal second quarter, with revenue rising 24% year-over-year to $119.8 billion. CEO Sundar Pichai highlighted that the company's AI investments are redefining its business, noting significant growth across key sectors. Search revenue grew 17% to $63.3 billion, while YouTube advertising revenue rose 13% to $11.06 billion. The Google Cloud unit saw an 82% jump in revenue to $24.8 billion, fueled by strong demand for AI infrastructure and the adoption of Gemini Enterprise by nearly 90% of the Fortune 100. Despite high capital expenditures, which reached $44.9 billion this quarter, the company reported a profit of $112.11 billion, bolstered by a $99.03 billion gain on equity securities. The administration announced new cost-effective models, including Gemini 3.6 Flash and Gemini 3.5 Flash Cyber, to address the pricing war in artificial intelligence. Sundar Pichai also noted that the company's autonomous vehicle venture, Waymo, is expected to be a meaningful contributor to financials by 2027.