Latest news with #GoogleCloud
Economic Times
3 hours ago
- Business
- Economic Times
Google parent Alphabet surprises with capital spending boost after earnings beat
Alphabet saw a surge in cloud computing demand. The company is increasing its capital spending. This is to about $85 billion. Alphabet beat Wall Street estimates for revenue and profit. Google Cloud sales grew significantly. AI features and a steady digital ad market helped. The company's shares initially dipped but then rallied. This was due to strong cloud demand details. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads CLOUD GAINS Tired of too many ads? Remove Ads AI RACE Alphabet on Wednesday cited massive demand for its cloud computing services as it hiked its capital spending plans for the year to about $85 billion and predicted a further increase next search giant strongly beat Wall Street estimates for quarterly revenue and profit on the back of new AI features and a steady digital advertising growth was driven by Google Cloud's sales, which surged nearly 32%, well above estimates for a 26.5% increase."With this strong and growing demand for our Cloud products and services, we are increasing our investment in capital expenditures." CEO Sundar Pichai said in an earnings of the company, which have risen more than 18% since its previous earnings report in April, dipped initially in extended trading after the report before rallying as executives shared details about strong cloud demand on a call with investors were surprised by the planned capital spending increase."I don't think anyone was expecting a change to that 2025 capex guide," said Dave Wagner, portfolio manager at Aptus Capital Advisors. "Google had an amazing quarter. It was an easy beat, and it was just offset by this $10-billion increase in capex."Capital spending is expected to increase further in 2026 due to demand and growth opportunities, Chief Financial Officer Anat Ashkenazi said on the added that while the pace of server deployment has improved, Alphabet continues to face more customer demand for its cloud services than it can had earlier pledged about $75 billion in capital spending this year, part of the more than $320 billion that Big Tech is expected to pour into building AI rise of artificial intelligence technologies has propelled demand for cloud computing services. Google Cloud still trails Amazon's AWS and Microsoft's Azure in total sales, but has tried to gain ground by touting AI offerings, including its in-house TPU chips that rival Nvidia's business segment grew its quarter-over-quarter customer count by 28%, Pichai said on the call."The comprehensiveness of our AI portfolio, the breadth of our offerings, both providing our models on GPUs and TPUs for our customers, all of that has been really driving demand," he said. In a huge win for Alphabet, ChatGPT maker OpenAI recently added Google Cloud to its list of cloud capacity suppliers, as Reuters exclusively reported in June, in a surprising collaboration between two companies that are competing head-to-head in AI. It also marked OpenAI's latest move to diversify beyond its major backer capex increase nevertheless raises concerns about Alphabet's pace of monetization and its impact on near-term profitability, senior analyst Jesse Cohen and its peers have defended their aggressive AI spending amid rising competition from Chinese rivals and investor frustration with slower-than-expected payoffs, saying those massive investments are necessary to fuel growth and improve their Search's artificial intelligence features such as AI Overviews and AI Mode are also helping the company boost engagement and tackle rising competition from chatbots such as ChatGPT that have surged in popularity. AI Mode has grown to 100 million monthly active users just two months after Google announced the start of its large-scale rollout during its annual developer conference. Google's own ChatGPT competitor, called Gemini, has more than 450 million monthly users, Pichai advertising revenue, which represents about three-quarters of the tech major's overall sales, rose 10.4% to $71.34 billion in the second quarter, beating expectations for $69.47 billion, according to data from LSEG."Hopefully, this will damper concerns by the investment community that has been worried that products like OpenAI/ChatGPT could be having an impact on Google's Search query growth," said Dan Morgan, senior portfolio manager at Synovus reported total revenue of $96.43 billion for the second quarter ended June 30, compared with analysts' average estimate of about $94 billion, according to data compiled by company reported profit of $2.31 per share for the period, beating estimates of $2.18 per share, according to LSEG data.
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First Post
3 hours ago
- Business
- First Post
Google parent Alphabet earns $96 bn in Q2 on AI boom, YouTube ad revenue nears $10 bn
Alphabet on Wednesday reported better-than-expected Q2 results, with overall revenue rising 14 per cent year-on-year and cloud revenue reaching $13.62 billion. YouTube ad revenue surged 13 per cent to $9.8 billion, while net income climbed nearly 20 per cent to $28.2 billion. read more A Google logo is seen at a company research facility in Mountain View, California, U.S. Reuters Alphabet reported stronger-than-expected second-quarter results on Wednesday, with overall revenue rising 14 per cent year-on-year and cloud revenue touching $13.62 billion, reflecting robust growth across its core businesses. YouTube was another major driver, with ad revenue surging 13 per cent to $9.8 billion, beating market expectations and highlighting the platform's continued momentum. Notably, TV has now become YouTube's biggest viewing platform, further chipping away at traditional broadcast audiences. The upbeat earnings sent Alphabet's stock up by as much as 3 per cent in after-hours trading. STORY CONTINUES BELOW THIS AD Meanwhile, the company announced a major boost in capital spending, increasing its 2025 investment target from $75 billion to $85 billion, as it intensifies focus on artificial intelligence and cloud infrastructure. CFO Anat Ashkenazi also signaled plans for further spending hikes in 2026. In the cloud segment, Alphabet's revenue jumped 32 per cent from a year ago, driven by rising demand. A recent partnership with OpenAI, which will now run ChatGPT on Google Cloud, further strengthens Alphabet's position in the AI infrastructure space. CEO Sundar Pichai called the collaboration 'very exciting,' underscoring its strategic importance. Net income for the quarter rose nearly 20 per cent to $28.2 billion, while the company's search and advertising units continued to perform strongly despite growing AI competition. The search business brought in $54.2 billion, and total advertising revenue rose 10.4 per cent to $71.3 billion, up from $64.6 billion last year. These results reflect Alphabet's broad-based strength as it scales its investments in future growth engines like AI, YouTube, and cloud computing, all while maintaining dominance in core segments.
Korea Herald
3 hours ago
- Business
- Korea Herald
Elitery a Pioneering MSSP Partner for Google Cloud's "Indonesia BerdAIa untuk Keamanan Siber" Program: A Strategic Move to Strengthen National Cyber Resilience
JAKARTA, Indonesia, July 24, 2025 /PRNewswire/ -- PT Data Sinergitama Jaya Tbk (Elitery) today announced that it will be a pioneering local Managed Security Service Provider (MSSP) partner for Google Cloud's "Indonesia BerdAIa untuk Keamanan Siber" program, which is designed to empower organizations with best-in-class Google Cloud Security solutions, expertise, and training to bolster the cyber resilience of Indonesia's key economic sectors and digital landscape. This was officially announced during the " Indonesia Cyber Forum: Google Cloud's Commitment to Strengthening National Cyber Resilience with New Security Operations Data Region in Indonesia" event, held on Wednesday, July 23, 2025, at the Fairmont Hotel, Jakarta. The forum brought together key leaders from the National Cyber and Crypto Agency (BSSN), State Intelligence Agency (BIN), Google Cloud, Elitery, and representatives from both public and private sectors. This event also marked a strategic collaboration between Google Cloud, Elitery, BIN, and BSSN, focused on strengthening national digital infrastructure, enhancing cyber threat detection and response capabilities, and supporting data sovereignty policies. Fanly Tanto, Country Director, Indonesia, Google Cloud, said, "Our newly launched local Security Operations Data Region brings Google Cloud's advanced, integrated, and dedicated security technology hardware and software to Indonesia. This empowers more organizations to leverage the AI-enabled Google Security Operations platform solution while storing their security telemetry data in Google Cloud data centers in Jakarta. This is a core component of our 'Indonesia BerdAIa untuk Keamanan Siber' program, offered jointly with our key partners like Elitery. This program will help organizations overcome three of security's most persistent challenges—threat overload, operational toil, and the talent gap, thereby strengthening their cyber defenses and contributing to a more secure and prosperous digital future for Indonesia." According to the 2025 CIO Agenda report by Gartner, 70% of CIOs in Southeast Asia, including Indonesia, prioritize cyber and technology risk management, with a strong focus on demonstrating the business value of IT strategies. This highlights Indonesia's commitment to building a resilient and secure digital ecosystem. Google Cloud's Security Operations Data Region in Indonesia is hosted in Google Cloud's Jakarta Cloud Region (i.e., Google Cloud data centers located in Jakarta). This allows more organizations in Indonesia, including government agencies and enterprises in regulated industries, to take advantage of the intelligence-driven, AI-enabled Google Security Operations platform for real-time threat detection, rapid response, deep analysis, and 24/7 monitoring, all while meeting their local data residency requirements. As a certified Google Security Operations MSSP, Elitery plays a strategic role in helping organizations strengthen their cybersecurity posture. Backed by over 14 years of experience in the IT industry, Elitery designs, implements, and manages end-to-end Google Cloud security solutions, ranging from real-time threat detection and response, to ensuring compliance with national regulations. Indra Dwiputra, Director of Elitery, said, "The presence of Google Cloud's Security Operations Data Region in Indonesia provides local access to world-class digital security solutions, highly relevant for Elitery's customers across various sectors. It strengthens compliance, accelerates threat response, and promotes the use of AI in security operations. As a strategic partner of Google Cloud, Elitery is committed to supporting both public and private organizations in building resilient and sustainable digital security." About PT Data Sinergitama Jaya Tbk (Elitery): Elitery is the official Managed Security Services Provider (MSSP) for Google Cloud Security in Indonesia, with over 14 years of experience supporting digital transformation across various industries through cloud, cybersecurity, and AI solutions. As a Google Cloud MSSP, Elitery possesses deep expertise in designing, implementing, and managing end-to-end managed security solutions based on Google Cloud Security. Elitery contributes to strengthening national cybersecurity posture by delivering proactive, scalable, and regulation-compliant services—positioning itself as a strategic partner for organizations looking to build a secure and resilient digital foundation. Throughout 2024, Elitery achieved several other significant milestones, including receiving the Indonesia Best CX-EX Strategy Award 2024 from SWA, and being recognized as a Great Place to Work (GPTW) 2024, reflecting our commitment to strong governance and an inclusive, collaborative work environment.
Time of India
4 hours ago
- Business
- Time of India
Google parent Alphabet surprises with capital spending boost after earnings beat
Alphabet on Wednesday cited massive demand for its cloud computing services as it hiked its capital spending plans for the year to about $85 billion and predicted a further increase next year. The search giant strongly beat Wall Street estimates for quarterly revenue and profit on the back of new AI features and a steady digital advertising market. Explore courses from Top Institutes in Please select course: Select a Course Category Data Analytics Cybersecurity Project Management Leadership Others PGDM Design Thinking healthcare Data Science Digital Marketing MCA Management Product Management others Data Science MBA CXO Public Policy Finance Operations Management Healthcare Technology Artificial Intelligence Degree Skills you'll gain: Data Analysis & Visualization Predictive Analytics & Machine Learning Business Intelligence & Data-Driven Decision Making Analytics Strategy & Implementation Duration: 12 Weeks Indian School of Business Applied Business Analytics Starts on Jun 13, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Beautiful Female Athletes in the World Click Here Undo Revenue growth was driven by Google Cloud's sales, which surged nearly 32%, well above estimates for a 26.5% increase. "With this strong and growing demand for our Cloud products and services, we are increasing our investment in capital expenditures." CEO Sundar Pichai said in an earnings release. Shares of the company, which have risen more than 18% since its previous earnings report in April, dipped initially in extended trading after the report before rallying as executives shared details about strong cloud demand on a call with analysts. Live Events But investors were surprised by the planned capital spending increase. "I don't think anyone was expecting a change to that 2025 capex guide," said Dave Wagner, portfolio manager at Aptus Capital Advisors. "Google had an amazing quarter. It was an easy beat, and it was just offset by this $10-billion increase in capex." Capital spending is expected to increase further in 2026 due to demand and growth opportunities, Chief Financial Officer Anat Ashkenazi said on the call. Ashkenazi added that while the pace of server deployment has improved, Alphabet continues to face more customer demand for its cloud services than it can supply. Google had earlier pledged about $75 billion in capital spending this year, part of the more than $320 billion that Big Tech is expected to pour into building AI capabilities. CLOUD GAINS The rise of artificial intelligence technologies has propelled demand for cloud computing services. Google Cloud still trails Amazon's AWS and Microsoft's Azure in total sales, but has tried to gain ground by touting AI offerings, including its in-house TPU chips that rival Nvidia's GPUs. The business segment grew its quarter-over-quarter customer count by 28%, Pichai said on the call. "The comprehensiveness of our AI portfolio, the breadth of our offerings, both providing our models on GPUs and TPUs for our customers, all of that has been really driving demand," he said. In a huge win for Alphabet, ChatGPT maker OpenAI recently added Google Cloud to its list of cloud capacity suppliers, as Reuters exclusively reported in June, in a surprising collaboration between two companies that are competing head-to-head in AI. It also marked OpenAI's latest move to diversify beyond its major backer Microsoft. The capex increase nevertheless raises concerns about Alphabet's pace of monetization and its impact on near-term profitability, senior analyst Jesse Cohen said. Alphabet and its peers have defended their aggressive AI spending amid rising competition from Chinese rivals and investor frustration with slower-than-expected payoffs, saying those massive investments are necessary to fuel growth and improve their products. AI RACE Google Search's artificial intelligence features such as AI Overviews and AI Mode are also helping the company boost engagement and tackle rising competition from chatbots such as ChatGPT that have surged in popularity. AI Mode has grown to 100 million monthly active users just two months after Google announced the start of its large-scale rollout during its annual developer conference. Google's own ChatGPT competitor, called Gemini, has more than 450 million monthly users, Pichai said. Google's advertising revenue, which represents about three-quarters of the tech major's overall sales, rose 10.4% to $71.34 billion in the second quarter, beating expectations for $69.47 billion, according to data from LSEG. "Hopefully, this will damper concerns by the investment community that has been worried that products like OpenAI/ChatGPT could be having an impact on Google's Search query growth," said Dan Morgan, senior portfolio manager at Synovus Trust. Alphabet reported total revenue of $96.43 billion for the second quarter ended June 30, compared with analysts' average estimate of about $94 billion, according to data compiled by LSEG. The company reported profit of $2.31 per share for the period, beating estimates of $2.18 per share, according to LSEG data.
Yahoo
5 hours ago
- Business
- Yahoo
Google crushes Q2, but investors want more than just AI
Google crushes Q2, but investors want more than just AI originally appeared on TheStreet. Alphabet, Google's parent company, beat expectations in its second-quarter 2025 earnings, showcasing resilience in its core advertising and cloud businesses even as broader tech competitors navigate turbulent markets. But for all the excitement around generative AI and cloud growth, the company is still staying far away from Bitcoin and crypto holdings. The tech giant reported revenue of $96.4 billion for the second quarter, a 14% year-over-year increase (13% in constant currency), reflecting broad-based strength across its business segments. Net income rose 19%, and earnings per share climbed 22% to $2.31. Google Cloud remained a standout performer, with revenue surging 32% to $13.6 billion, marking its sixth consecutive profitable quarter. Sundar Pichai, CEO, said: "We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well. We continue to see strong performance in YouTube as well as subscriptions offerings. And Cloud had strong growth in revenues, backlog and profitability."Yet as more institutional players begin dipping their toes into Bitcoin and tokenization, Alphabet is notably absent from the crypto narrative. Crypto-neutral, for now Unlike Tesla or MicroStrategy, Alphabet does not list any digital assets like Bitcoin on its balance sheet. There was no mention of crypto during the earnings call or in the 10-Q filing, signaling the company is maintaining its long-standing cautious stance on direct crypto exposure. That's despite its growing involvement in blockchain infrastructure and partnerships through Google Cloud. In the last year alone, Google Cloud has expanded support for blockchain analytics, validator services, and even signed deals with projects like Solana, Polygon, and LayerZero to support node infrastructure and development tools. The company has also launched integrations for developers building in Web3 — but it hasn't taken the next step of holding crypto as an asset. This crypto-neutral posture is increasingly rare among tech giants. Even Meta, another AI-obsessed titan, has backed NFT initiatives and stablecoin experiments in the past, while Amazon is reportedly exploring crypto payments integration. Still, Alphabet seems content to stay in the 'picks and shovels' lane, providing infrastructure without taking on the volatility. Why it matters With Bitcoin trading above $118,000 and corporate adoption quietly rising, Alphabet's stance is being watched closely. Some analysts argue that Google's conservative approach is what shields it from investor scrutiny during market corrections. Others believe the company risks falling behind as tokenization and decentralized finance continue to Alphabet's fortress balance sheet and strong earnings give it plenty of room to play it safe. The company ended the quarter with over $133 billion in cash and marketable securities, more than enough to experiment with digital assets — if it ever chooses to. For now, investors looking for crypto exposure won't find it in Alphabet's portfolio. But with Google Cloud increasingly supporting blockchain projects, the foundation is already being laid — even if there's no Bitcoin wallet on the books just yet. Google crushes Q2, but investors want more than just AI first appeared on TheStreet on Jul 23, 2025 This story was originally reported by TheStreet on Jul 23, 2025, where it first appeared. Sign in to access your portfolio
