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Shares tumbled about 3 percent after closing at $1,482 and change.
The search giant posted $46.08 billion in revenue, missing estimates of $46.94 billion, while profits were stronger coming in at $15.35 per share, exceeding the $12.53-per-share forecast among analysts.
Pichai, in the earnings materials, noted: “Our investments in deep computer science, including artificial intelligence, ambient computing and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet."
This is Pichai's first quarter since founders Larry Page and Sergey Bring relinquished their roles.
In a first, the company disclosed key figures for YouTube, which earned $15 billion in annual revenue, and Cloud, which averaged $10 billion.
The disclosures for these key businesses are an evolving strategy, according to CFO Ruth Porat. “To provide further insight into our business and the opportunities ahead, we’re now disclosing our revenue on a more granular basis, including for Search, YouTube ads and Cloud," she clarified.
Google's Cloud business is an important priority for the tech giant, which is trailing rivals Microsoft and Amazon in the space. Microsoft recently won the lucrative Pentagon Cloud contract known as Jedi.
Both tech giants recently posted quarterly results that smashed Wall Street expectations.