Alphabet Inc - Ordinary Shares - Class A

Top-line momentum & profitability (good): - Alphabet delivered 12th consecutive quarter of double-digit revenue growth: revenue $119.8B (+24% YoY; +23% constant currency). - Operating income $40.8B (+30%); operating margin 34% (improved). - EPS/net income increased significantly, largely tied to unrealized gains in equity investments (i.e., accounting/valuation driver, not only operating strength). - Cash flow: Operating cash flow $39.1B in Q2; free cash flow (FCF) -$5.9B in Q2 due to heavy capex; FCF for trailing 12 months $53.3B.

AI-driven demand across Search/YouTube/Cloud (good + surprising): - Search & other revenue +17% YoY to ~$63.3B; YouTube ads +13% YoY to ~$11.1B. - AI usage/product adoption metrics strengthened materially: - AI mode >1B monthly active users (since global expansion last Oct). - Gemini app ~950M MAUs; daily active users tripled YoY. - Omni (video creation “from any input”) shows +40% increase in daily active users since IO May. - Model/API scale: ~22B tokens processed per day permanently (up from $16B tokens last quarter). - Supply constrained environment continues—management explicitly frames it as a signal of momentum/adoption.

Cloud acceleration + backlog surge (good, key forecast implication): - Google Cloud revenue +82% YoY to $24.8B. - Cloud operating income $8.8B, operating margin 35.6% (up from ~20.7% last year). - Backlog increased by >$50B sequentially to $514B, driven by Enterprise AI demand. - Management expects just over 50% of backlog recognized as revenue over the next 24 months. - Gemini Enterprise penetration is very strong: ~90% of Fortune 100 using it; agent development kit downloads ~70M total (Q2).