Alphabet shares rose nearly 1% in after hours trading Wednesday after the Google parent reported stronger than expected second quarter revenue, supported by accelerating growth across Search and Google Cloud.

Revenue increased 24% from a year earlier to $119.8 billion, beating the $117.1 billion FactSet consensus estimate and marking Alphabet’s twelfth consecutive quarter of double digit growth.

Google Services revenue rose 15% to $94.5 billion. Search and other revenue increased 17% to $63.3 billion, while YouTube advertising revenue climbed 13% to $11.1 billion.

Google Cloud recorded the strongest growth across Alphabet’s major businesses, with revenue surging 82% to $24.8 billion. The result exceeded Wall Street expectations of roughly $22.5 billion as demand increased for enterprise AI infrastructure, AI services, and core cloud products.

Cloud operating income more than tripled to $8.8 billion from $2.8 billion a year earlier. Total operating income increased 30% to $40.8 billion, while Alphabet’s operating margin expanded from 32% to 34%.

Alphabet reported net income available to common shareholders of $112.1 billion and diluted earnings of $9.11 per share. The result included a $99 billion gain on equity securities, which contributed $77.1 billion to net income and $6.26 to diluted earnings per share.

The company generated $39.1 billion in operating cash flow but recorded negative free cash flow of $5.9 billion as capital expenditures doubled to $44.9 billion. Alphabet said the spending supported the continued expansion of its AI infrastructure and global computing capacity.

CEO Sundar Pichai said Gemini models are now processing 22 billion API tokens per minute, while the Gemini app has reached 950 million monthly active users. Nearly 90% of Fortune 100 companies are using Gemini Enterprise, according to the company.