Google failed to meet Wall Street’s growth expectations in its second quarter as its expenses increased and revenues from affiliates rose less than anticipated, sending its shares more than 7 per cent lower in after-hours trading.

Google does not provide earnings guidance and its profits of $3.56 per share fell short of the $3.59 predicted by the consensus of analysts gathered by Reuters Estimates. Gross revenues of $3.87bn, up 58 per cent year-on-year, were in line with Wall Street forecasts.