A cyclist rides past Google Inc. offices inside the Googleplex headquarters in Mountain View, California, on Feb. 18, 2016.
Michael Short—Bloomberg/Getty Images
By Ian Salisbury
July 28, 2016

Alphabet, parent of search giant Google, said second-quarter revenue climbed 21% on Thursday, exceeding Wall Street’s expectations.

Following the market close, the Mountain View, Calif., company reported second-quarter revenue of $21.5 billion. That was up 21% from $17.7 billion a year ago. The result beat the average analyst forecast of $20.8 billion, as compiled by the Financial Times. In the first quarter, the company had disappointed investors by missing analysts projections.

Alphabet’s profit rose to $4.9 billion, or $7 a share for class A and B common stock, up from $3.9 billion, or $4.93 a share, in the prior year.

The vast majority of Alphabet’s revenue came from the Google search unit. It’s “Other Bets” division, which includes everything from ‘Internet of Things’ brand Nest to the company’s efforts to create self driving cars, and which last year’s reorganization was designed to assess, posted an operating loss of $859 billion.

Google’s earnings come as other Silicon Valley stars have posted mixed results: On Monday Apple reported its second straight quarter of declining sales after a remarkable run of 10 consecutive years of quarterly gains. But Facebook, Google’s chief rival for the vast ocean of online advertising spending, wowed investors with 59% annual revenue growth.

Alphabet shares, which have returned 15.8% in the past year, closed Thursday at 765.61, up $3.64, or 0.5%.

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