With the year well underway, Alphabet has just reported its Q2 2018 results, with earnings of $32.65 billion — up 26% from the same quarter last year. These numbers range from April to June and beat analyst expectations, with the stock up nearly 5% in after-hour trading.

Nintendo Switch

Revenue is up 26% from $26.01 billion in Q2 2017, with net income at $3.19 billion for this quarter after paying off the EU fine. For comparison, Alphabet reported $31.1 billion in revenue and a $9.4 billion in net income last quarter.

“We delivered another quarter of very strong performance, with revenues of $32.7 billion, up 26% versus the second quarter of 2017 and 23% on a constant currency basis. Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet,” said Alphabet CFO Ruth Porat.

Stock is now up 5% in after hour trading primarily due to Alphabet reporting earnings per share at $11.75 versus an estimated $9.66. However, Alphabet has accounted for the European Union’s landmark $5 billion fine on Android in the Q2 2018 period even though the announcement of the anti-trust decision came after the quarter’s end.

As such, operating incoming including fines is $2.8 billion versus $7.8 billion. While operating incoming is 9% versus 24% and net income at $3.1 billion versus $8.2 billion.

Expect Google CEO Sundar Pichai and Ruth Porat to at be asked questions on the matter during the conference call, if they do not issue a statement themselves. Beyond the fine, the bigger impact to the bottom line is the changes the European regulators have demanded to the Android business.

As a reminder, Nest is now a part of Google’s “Other Revenue” along with Pixel and Home hardware, Play Store, and enterprise efforts. This quarter it made $4.4 billion, compared to $3.2 billion the same quarter last year.

The much-analyzed “Other Bets” continues to lose money, but is slowly increasing revenue. It reported $145 million revenue primarily generated by Verily and Fiber, with operating loss up to $732 million from $571 million in the previous quarter.

As usual, Alphabet will hold an earnings call with investors and members of the press to further break down numbers from its Q2 2018 earnings release. You can follow along via the livestream below and we’ll have coverage of any notable tidbits the company reveals.

About the Author