Alphabet (Google) Q2 2021 Earnings Report: Revenue Hits $61.9B, Shares Surge
Discover how Alphabet's Q2 2021 earnings surpassed expectations with impressive growth in Google Cloud and advertising revenue, driving strong stock performance.
Alphabet Inc. (GOOGL) delivered an outstanding Q2 2021 earnings report, significantly exceeding Wall Street forecasts.
Highlights
- Google Cloud revenue surged beyond analyst predictions.
- Google Cloud remains a key growth engine, offering developers a robust platform for app development and collaboration tools.
- Advertising revenue soared by 68.9% year-over-year, fueled by strong performance across Google Search, YouTube, and Google Network.
Source: Analyst consensus from Visible Alpha
In-Depth Financial Overview of Alphabet (GOOGL)
Alphabet, Google's parent company, reported Q2 FY 2021 earnings that dramatically outpaced analyst expectations. Earnings per share (EPS) rose an impressive 169.1% year-over-year, while total revenue climbed 61.6% compared to the same quarter last year. Google Cloud generated $4.6 billion in revenue, surpassing forecasts and marking its fastest growth since Q3 2019. Following the announcement, Alphabet's shares increased by over 3% in after-hours trading. Over the past 12 months, Alphabet stock has returned 72.4%, outperforming the S&P 500's 35.9% return.
Google Cloud Revenue Growth
Google Cloud's revenue growth of 53.9% underscores its rising importance within Alphabet's portfolio. The segment offers a scalable, reliable cloud platform for developers, along with productivity tools such as Gmail, Docs, Drive, Calendar, and Meet. As of Q1 2021, Google Cloud held an estimated 9% share of the $150 billion global cloud market, ranking third behind Microsoft's Azure and Amazon Web Services.
Advertising Revenue Expansion
Alphabet's advertising revenue rebounded strongly, increasing 68.9% year-over-year to $50.4 billion. This growth reflects recovery from the pandemic-related downturn in 2020. Key contributors include YouTube, which saw revenue rise 83.7% to $7.0 billion, as well as robust performance from Google Search, which dominates approximately 90% of the global search engine market.
Alphabet's next quarterly earnings report for Q3 FY 2021 is anticipated on October 27, 2021.
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