Google on Tuesday reported sales of nearly $85 billion, surpassing Wall Street’s expectations by about $500 million.

“Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud,” CEO Sundar Pichai said in a statement. “We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.”

Wedbush, J.P.Morgan, and Bank of America analysts had forecast that AI would boost Google’s performance in the second quarter.

Google’s solid performance in the three months ended June 31 follows its sunny first quarter earnings report in April, when the company reported a surge in profits of 60%, partly thanks to AI. The company’s stock price that followed pushed its market capitalization past the $2 trillion mark to join Apple, Microsoft, and Nvidia.

Google has aggressively worked to dominate the emerging industry for generative artificial intelligence. In 2024, it announced a range of new and updated AI products— its latest is a Gemini AI chatbot that Google claims is 20% faster than the newest ChatGPT. Google also previewed a universal AI assistant of the future at its developer conference, Google I/O, that would be able to see and talk through a user’s smart glasses.

Prior to Google’s second quarter earnings report, the company got a bit of bad news when its largest-ever acquisition fell through. Google’s $23 billion bid to purchase the Israeli cybersecurity firm Wiz was rejected.