What happened

Shares of Alphabet (GOOGL 0.07%) (GOOG 0.14%) increased more than 12% last month, according to data provided by S&P Global Market Intelligence, following the release of the online search giant's second-quarter results.

So what

Alphabet's revenue jumped 19% year over year to $38.94 billion, besting Wall Street's expectations for revenue of $38.15 billion. The company's net income leapt 21% to $9.95 billion, or $14.21 per share. That, too, was above analysts' estimates for earnings per share of $11.30.

Google's core advertising business continues to enjoy robust growth, with revenue rising 16% to $32.6 billion. Yet Google's "other revenues" segment is expanding even more rapidly. Fueled by the strong growth of Google's cloud business, revenue in this segment surged 40% to $6.2 billion.

"Q2 was another strong quarter for Google Cloud, which reached an annual revenue run rate of over $8 billion and continues to grow at a significant pace," Google CEO Sundar Pichai said during a conference call with analysts.

A digital cloud surrounded by digital charts.

Google's cloud business is a key growth driver for Alphabet. Image source: Getty Images.

Now what

Although Alphabet continues to invest aggressively in its promising slate of growth initiatives, it's also returning enormous amounts of capital to shareholders. The company announced a $25 billion share repurchase plan along with its second-quarter results.

Alphabet's tremendous free cash flow production should allow the internet giant to continue to reward its shareholders with stock buybacks and value-creating investments in the years ahead. And judging by the stock's recent gains, it appears that investors are pleased.