Google Cloud revenue increased by 28% year-over-year, reaching $12.260 billion. This growth highlights the company's success in expanding its cloud services and attracting enterprise customers, contributing significantly to overall revenue diversification.

Alphabet announced a definitive agreement to acquire Wiz, a leading cloud security platform, for $32.0 billion. This acquisition is expected to enhance Google Cloud's security offerings and attract more enterprise clients, aligning with the company's strategic focus on cloud computing and AI-driven services.

Capital expenditures increased to $17.2 billion, primarily reflecting investments in technical infrastructure. This ongoing investment supports the growth of core business activities and the development of AI products and services, positioning the company for future innovation and expansion.

The company's operating margin improved to 34%, indicating effective cost management and operational efficiency. This improvement reflects management's ability to control costs while driving revenue growth across key business segments.

Alphabet repurchased $15.3 billion of Class A and Class C shares and increased the quarterly dividend by 5% to $0.21 per share. These actions demonstrate management's confidence in the company's financial position and commitment to returning value to shareholders.

The company continues to address ongoing regulatory inquiries and legal proceedings, including those related to antitrust and data privacy. While these matters pose potential risks, management's proactive approach to compliance and defense demonstrates a commitment to mitigating potential adverse impacts.

The company faces numerous antitrust investigations and legal proceedings globally, including those related to Search, Android, and advertising technology. These matters could result in substantial fines, changes to business practices, and potential adverse effects on financial results.

Alphabet is subject to a number of privacy-related laws and regulations, and is currently party to a number of privacy investigations and lawsuits ongoing in multiple jurisdictions. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services.

The company is monitoring ongoing developments surrounding international trade and the macroeconomic environment. As a result of volatility in international trade and financial markets, we may experience direct and indirect effects on our business, operations, and financial results.

Google Services revenues increased by 10% year-over-year, driven by Google Search & other and Google subscriptions, platforms, and devices. This growth indicates the company's ability to maintain its market leadership in core advertising and subscription-based services despite increasing competition.

Google Cloud revenue increased by 28% year-over-year, indicating a strong competitive position in the cloud computing market. The acquisition of Wiz is expected to further enhance Google Cloud's competitive edge by bolstering its security offerings.

Changes in paid clicks, cost-per-click, impressions, and cost-per-impression reflect evolving market dynamics and user behavior. These metrics are influenced by factors such as advertiser competition, device mix, and geographic mix, requiring continuous adaptation and optimization of monetization strategies.

The company's operating margin improved to 34%, indicating enhanced operational efficiency and effective cost management. This improvement reflects management's ability to control costs while driving revenue growth across key business segments.

The TAC rate decreased from 21.0% to 20.6%, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. This shift indicates a more efficient allocation of traffic acquisition costs across different business segments.

Depreciation expense increased, reflecting ongoing investments in technical infrastructure. While this impacts short-term profitability, it supports long-term growth and operational capacity, particularly in AI and cloud computing.

R&D expenses increased by $1.7 billion, reflecting the company's commitment to innovation and technological advancement. These investments support the development of new products, services, and AI capabilities, positioning the company for future growth.

The company expects to increase investment in technical infrastructure to support the growth of the business and long-term initiatives, in particular in support of AI products and services. This strategic focus on AI is expected to drive innovation and competitive advantage in the long term.

Google Cloud Platform provides access to solutions such as AI offerings including our AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; Google Workspace includes integrated features like Gemini for Google Workspace. These new features are expected to drive customer usage and demand.

Alphabet repurchased $15.3 billion of Class A and Class C shares, reflecting a commitment to returning value to shareholders. The Board of Directors authorized an additional $70.0 billion for share repurchases, signaling continued confidence in the company's financial position.

The Board of Directors declared a quarterly cash dividend of $0.21, representing a 5% increase from the previous quarter. This increase reflects the company's financial stability and commitment to providing consistent returns to shareholders.

The announced acquisition of Wiz for $32.0 billion demonstrates a strategic allocation of capital towards high-growth areas such as cloud security. This acquisition is expected to enhance Google Cloud's competitive position and drive long-term growth.

The company regularly enters into multi-year, non-cancellable agreements to purchase renewable energy and energy attributes, such as renewable energy certificates. This demonstrates a commitment to environmental sustainability and reducing carbon footprint.

The company makes investments in land, buildings, and servers and network equipment through purchases of property and equipment and lease arrangements to provide capacity for the growth of our services and products. This includes data center land and building construction.

The company is investing in AI infrastructure and AI offerings including our AI infrastructure, Vertex AI platform, and Gemini for Google Cloud. These services provide access to solutions such as AI offerings including our AI infrastructure, Vertex AI platform, and Gemini for Google Cloud: cybersecurity; and data and analytics

EMEA revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the euro. APAC revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Japanese yen, Australian dollar, and South Korean won.

The OECD is coordinating negotiations among more than 140 countries with the goal of achieving consensus around substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of 15%.

We are monitoring ongoing developments surrounding international trade and the macroeconomic environment. As a result of volatility in international trade and financial markets, we may experience direct and indirect effects on our business, operations, and financial results.