We’ve sent a lot of earnings reviews this season. All of those and my current portfolio/performance can all be found here.

The cloud backlog grew by 55% Q/Q (100% Y/Y) to $240B. Importantly, contracted Anthropic compute is a big piece of the large jump, but Alphabet was careful to mention a few times that it was driven by a “wide breadth of customers.” That's nice, but Anthropic was still $50-$60B of the ~$86B increase. That’s not the same thing as getting nearly half of your entire cloud backlog from OpenAI like Microsoft does. Anthropic is relatively more fiscally responsible than its aggressive rival and not throwing out giant spend commitments left and right. Still, they are burning a lot of cash and this does create more concentration risk.

EBIT included $2.1B in compensation related to the Waymo investment round. This was part of operating expenses (OpEx). Excluding the item, EBIT beat estimates by 3%. At the same time, equity investments boosted net income by $2.3B. Excluding both of those items, EPS would have beaten estimates by $0.16 instead of $0.18. The Waymo charge led to sharp R&D growth and OpEx growth of 29% Y/Y. 21% G&A growth was also elevated, but that was due to charitable donation timing.