Alphabet this evening revealed sales had risen by 21 per cent and were ahead of the $25.6bn pencilled in by analysts.
The earnings beat was despite Alphabet shouldering a $2.7bn EU anti-trust fine during the three months to June.
Shares fell by three per cent in after hours trading after cost per click – the amount paid by advertiser each time a user clicks on them – fell 23 per cent. Analysts had been expecting a 15 per cent fall.
Sales minus payouts to partners were $20.9bn in line with consensus forecasts but failed to beat top-end expectations, according to data compiled by Bloomberg.
However, earnings per share were $5.01 compared with a Thomson Reuters analyst poll predicting $4.49.
Alphabet finance chief Ruth Porat said:
We're delivering strong growth with great underlying momentum while continuing to make focused investments in new revenue streams.
Google’s advertising revenue grew 18.4 per cent to $22.7bn. “Paid clicks”, where an advertiser only pays if a user clicks on advertisements, jumped by 52 per cent. Data and analytics firm FactSet had forecast in a 35.2 per cent rise.
Last month hit Google was fined for favouring its own shopping service, taking a tough line in the first of three probes of its dominance in searches and smartphone operating systems. It is the first of three probes of its dominance in searches and smartphone operating systems.
Earlier in the evening Alphabet announced Google head Sundar Pichai had been appointed to group's board of directors.
Pichai has been with Google for 13 years. Alphabet chief executive Larry Page said he was "excited" at Pichai's appointment and praised him for "doing a great job as Google’s CEO, driving strong growth".
Google’s co-founders, Larry Page and Sergey Brin worked with Pichai before Sundar took over as Google’s chief executive in August 2015.