Alphabet exceeded Wall Street expectations with a 15% revenue increase to $88.27 billion and a 34% rise in profits to $26.3 billion. Despite strong growth in both digital advertising and Google Cloud, regulatory concerns loom as the company faces multiple antitrust cases. CEO Sundar Pichai attributes the success to long-term investments in AI, while capital expenditures have surged due to competitive pressures. Google's stocks rose 5% in after-hours trading following the earnings report, highlighting investor optimism despite ongoing legal uncertainties.