Shares of Alphabet (GOOGL) - Get Alphabet Inc. Class A Report, the parent company of Google reported strong results from a bounce back quarter that lapped the company's results from a year ago and topped analyst estimates.
Alphabet reported second quarter earnings of $27.26 per share on revenue that jumped 62% year-over-year to $61.9 billion. Analysts were expecting the company to report second quarter earnings of $19.24 per share on revenue of $56.2 billion.
“In Q2, there was a rising tide of online activity in many parts of the world, and we’re proud that our services helped so many consumers and businesses," CEO Sundar Pichai said.
Google shares on Tuesday were rising 0.91% to $2,760.84 per share after hours at last check.
The company's operating margin jumped to 31% in the quarter from 17% a year ago.
Google Search, the company's biggest money maker, saw revenue jump to $35.85 billion from $21.32 billion a year ago. Advertising revenue overall, including YouTube and other streams totaled $50.44 billion.
Google Cloud revenue also rose year-over-year to $4.6 billion from $3 billion a year ago.
"Our long-term investments in AI and Google Cloud are helping us drive significant improvements in everyone’s digital experience, Pichai said.
Google Cloud still reported an operating loss of $591 million in the quarter, much lower than the more than $1.4 billion the unit lost in the year ago quarter.
Google Services, which includes the company's advertising units, was once again the company's most, and only, profitable segment with an operating income of $22.34 billion compared to an operating income of $9.54 billion a year ago.