Alphabet’s second quarter revenue topped estimates but its shares are taking a hit after hours thanks to the record-breaking, $2.7 billion antitrust fine imposed on Google last month by the European Commission.

Breaking down the numbers, the tech giant reported a net income of $3.52 billion, or $5.01 per share.

Non-GAAP earnings were $5.01 per share on revenue of $26 billion, up 23 percent year-over-year, when including traffic acquisition costs (TAC). On average, Wall Street was looking for Q2 earnings of $4.49 per share with $25.65 billion in revenue.

Net revenue excluding TAC was expected to be at $20.87 billion. Alphabet delivered above target with $20.92 billion in revenue excluding TAC.

Google’s EU fine had a significant impact on analyst expectations for the quarter. Analyst firm Stifel lowered its estimates from $7.91 per share to $4.02 per share, while JMP’s estimate went from $8.54 per share to of $4.64 per share. Excluding the EU fine, Alphabet said earnings were $8.90 per share.

Google revenues, which include more of the enterprise cloud, software and data management products, attributed most of Q2 sales with $25.76 billion in revenue, up from $24.5 billion the previous quarter.

Google’s cost-per-click, which is how much it makes off each advertising click, decreased 26 percent year-over-year. The company’s total advertising revenue was $22.7 billion.

In the Other Bets category, which houses Waymo, Nest, Fiber, Alphabet’s healthcare-driven initiatives and other speculative projects, Alphabet posted revenue of $248 million over the quarter, with operating losses narrowing slightly to $772 million. Last quarter, losses in this category totaled $855 million.

Looking forward toward the third quarter, Wall Street is expecting non-GAAP earnings of $8.43 per share with $26.7 billion in revenue.

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