Summary by Futu AI
Alphabet Inc., the parent company of Google, reported a robust financial performance for the quarter ended June 30, 2024. The company's revenues increased by 14% year-over-year to $84.742 billion, driven by a 12% rise in Google Services revenues and a 29% surge in Google Cloud revenues. Operating income saw a significant 26% increase to $27.425 billion, with operating margin expanding from 29% to 32%. Net income also grew by 29% to $23.619 billion, and diluted earnings per share rose by 31% to $1.89. The company's effective tax rate decreased from 16.1% to 14.3%, primarily due to changes in U.S. federal foreign tax credits and an increase in stock-based compensation-related tax benefits. Alphabet's capital expenditures primarily focused on technical infrastructure, including investments in servers, network equipment, and data centers, totaling $25.2 billion for the first half of 2024. The company also returned capital to shareholders through $31.655 billion in share repurchases and declared a cash dividend of $0.20 per share for the quarter.