But it wasn't enough to save the company from its first-ever revenue decline, as the coronavirus crisis continues to pummel the advertising industry.
Cloud was one of the brightest spots for Google, seeing a 43% year-on-year boost. Stock rose slightly in after-hours trading.
Alphabet reported a quarterly profit of $6.96 billion, or $10.13 per share, compared with the analysts' average estimate of $5.645 billion, or $8.29 per share.
The Mountain View, Calif. -based Alphabet exceeded analysts' overall revenue expectation, reporting $38.29 billion in second-quarter revenue, a 2 percent drop from last year's second quarter, when revenue had increased 19 percent to $38.9 billion. Both then and now, the company's business suffered from shrinking advertising budgets.
Revenue from Google Search dropped 10 percent to $21.31 billion, from $23.64 billion in the same period a year ago, but trends improved as the quarter progressed, according to Porat.
Alphabet's overall second-quarter revenue was $38.3 billion, down 2% from the same time a year ago.
Despite the notable decline, the company's stock remained steady after its earnings call, in fact rising less than 1%.
Google saw a "modest" improvement in ad-sales trends in July, but "it's premature to say we're out of the woods" given macroeconomic uncertainty, Alphabet and Google CFO Ruth Porat said on the company's earnings call.
Revenues dipped two percent to $38 billion (roughly Rs. 2.83 lakh crores), as chief financial officer Ruth Porat said; "We continue to navigate through a hard global economic environment". GCP growth was again led by Google Cloud's infrastructure offerings and data and analytics platform, she said.
Cloud revenue was US$3 billion, up 43 per cent from the same quarter past year, the Mountain View, California-based company said in a statement Thursday.
Spending and hiring will continue for the cloud business, Porat said. Porat attributed the growth to a bump in app revenues as people were stuck at home because of the pandemic looking for entertainment.
The lower Google Cloud revenue growth in the second quarter compared to the 52 percent increase in the fourth quarter reflects the fact that G Suite lapped a price increase introduced in April previous year, according to Porat. It's operating losses, meanwhile, swelled to $1.1 billion.
The company's board also authorized the company to repurchase up to $28 billion of its Class C shares.
While Google's numbers were a little better than feared, they come at a tense time for the company.
Pichai and the CEOs of Apple, Amazon and Facebook yesterday were grilled by US congressmen during a hearing on their online platforms' market power and dominance held by the House Committee on the Judiciary's Subcommittee on Antitrust, Commercial and Administrative Law.