Alphabet Q2 FY17 earnings came in at $5.01 per share on $26 billion in revenue, compared to the consensus estimates of $4.44 per share on $20.8 billion in revenue. In last year’s second quarter, the Google parent reported earnings of $7 per share on $21.5 billion in revenue.

Excluding the fine levied by European regulators, Google’s earnings amounted to $8.90 per share, versus the $8.36 per share that was expected. However, these earnings numbers are skewed a bit due to that fine because some contributing analysts accounted for the fine in their estimates, while others did not.

Alphabet Q2 FY17 earnings
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Alphabet Q2 FY17 earnings

The Alphabet Q2 FY17 earnings release revealed strong growth in Google Properties, as the segment’s revenue grew to $18.4 billion from $15.4 billion. Google Network Members’ Properties revenues rose to $4.2 billion from $3.7 billion. Google ad revenues increased to $22.7 billion from $19.1 billion last year. Google other revenues grew to $3.1 billion from $2.2 billion in last year’s second quarter, while Google segment revenues increased to $25.8 billion from $21.3 billion a year ago. Other bets revenues grew to $248 million from $185 million last year.

Traffic acquisition costs to Google Network Members amounted to $3 billion, and it consisted of 72% of Google Network Members’ Properties revenues. Traffic acquisition costs to distribution partners increased to $2 billion from $1.4 billion in the year-ago quarter. Total traffic acquisition costs were $5.1 billion, up from $4 billion last year. As a percent of Google ad revenues, total traffic acquisition costs amounted to 22%, a slight increase from the 21% recorded last year.

Google continues to grow

The Alphabet Q2 FY17 earnings release reported a 52% year over year increase in aggregate paid clicks and a 61% increase in paid clicks on Google Properties. Paid clicks on Google Network Members’ properties increased 9% year over year. However, aggregate cost-per-click remained in freefall, plunging 23% year over year. Cost-per-click on Google Properties fell 26%, while on Google Network Members’ properties, it fell 11%.

Alphabet reminded investors that it recorded the $2.74 billion fine levied by antitrust regulators in the European Union during the second quarter. The company’s press release did not indicate whether it will appeal that fine, although management will probably discuss this during the earnings call tonight.

After the Alphabet Q2 FY17 earnings release, the company’s stock slumped by as much as 2.7%, falling to $971.33 in after-hours trades.