The tech giant announced that its operating income for the first period of fiscal 2018 came in at $7 billion, marking a $400 million increase over its year-ago operating income of $6.6 billion. Alphabet’s earnings amounted to $9.93 per share, topping the Wall Street consensus estimate of $9.28 per share, according to Thomson Reuters.
Revenue was a strong point for the company as well at $31.15 billion, topping the $30.29 billion that analysts were calling for, according to data compiled by Thomson Reuters. A new accounting rule affected the company’s financial output as Alphabet had to report the unrealized gains and losses from investments in companies such as Uber, resulting in a $3 billion gain on equity securities.
The tech company impressed in its ad business, which unveiled revenue of $26.64 billion for the first quarter. Its “other revenues” came in at $4.3 billion, which include the company’s cloud business and its hardware sales, marking a $3.2 billion gain compared to the year-ago period, including revenue from its smart-home unit Nest for the first time.
Alphabet also had other businesses that served as healthy revenue streams, including healthcare company Verily and internet service provider Fiber–the company calls this segment “Other Bets.” These Other Bets brought in first-quarter revenue of $150 million and operating losses of $571 million.