While the rest of the Magnificent 7 were stumbling through earnings season like they’d forgotten how to run a business, Google (Alphabet, technically) walked in and absolutely crushed it. We’re talking $102.3 billion in revenue—their first-ever $100 billion quarter—and earnings that beat expectations by a country mile.
Here’s the thing: when everyone else is disappointing investors, Google’s doing the opposite. Their stock jumped 5% at the opening bell before settling down to a respectable 3% gain on a day when the Nasdaq was down 1.4%. That’s not luck. That’s execution.
The numbers tell the story. Revenue climbed 16% year-over-year, net income jumped 33%, and earnings per share hit $2.87—crushing the $2.28 estimate. Google’s advertising business, the real money-maker, brought in $74.2 billion, up 13%. But here’s what’s actually interesting: Google Cloud is becoming a serious player. Revenue grew 34% to $15.2 billion, and operating income skyrocketed 89% to $3.6 billion. That’s the kind of growth that gets Wall Street excited.
CEO Sundar Pichai called it a “terrific” quarter, and honestly, he’s not wrong. The company’s full-stack AI approach is working. Gemini now has over 650 million monthly active users, and they’re shipping products at record speed. Google Cloud’s backlog hit $155 billion—up $49 billion from last quarter. That’s basically money in the bank.
Sure, they’re spending big on capital expenditures—$91 to $93 billion expected in 2025, up from $85 billion—but investors didn’t freak out. Why? Because it’s working. About 60% goes to servers, 40% to data center equipment. They’re building the infrastructure to dominate AI, and the market gets it.
JP Morgan even bumped their price target to $340. At 26 times earnings, Google’s looking pretty reasonable compared to the rest of the Mag 7 crowd. When everyone else is struggling, Google’s the one reminding everyone what a well-run tech company actually looks like.