Google has recorded a 27% surge in net profit for the three months ending August, against the year-ago period.

The search giant made a net profit of $US1.64 billion for the quarter, pegging the gain on a revitalised online advertising market.

The result was handily ahead of analysts' expectations.

Revenue was up 7% from the year-ago quarter to $US5.94 billion.

"While there's obviously a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and we're seeing lots of signs of that in all of the industries that we pay attention to," chief executive Eric Schmidt told a conference call.

Later, Mr Schmidt told The Wall Street Journal that Google was ready to start investing again, citing plans to hire and pursue acquisitions and partnerships. "We're open for business," he said.

Mr Schmidt said Google was open to acquisitions, echoing recent comments by Microsoft CFO Chris Liddell, while visiting Auckland (read: Liddell: cashed-up Microsoft primed for post-recession takeover spree).

Google shares (NAS: GOOG) were up 4.03% in late trading on the Nasdaq to $US551.28. They have a 52-week range of $US544 to $US554.

Google's result followed a mixed report for IBM yesterday.

IBM's profit rose 14%, but sales fell 7%. The company's shares (NYSE: IBM) were down 5.21% in late trading. Although sales slipped in the key new areas of software and services, margins increased and the company raised its full-year earnings guidance.