Google reported strong second-quarter results on Wednesday, beating expectations for revenue and earnings. The company’s shares rose in after-hours trading following the announcement. Alphabet, Google’s parent company, posted revenue of $96.43 billion, surpassing the $94 billion expected by analysts.
Just got off the earnings call – great quarter and it was our (and my) 40th call as Alphabet.
August will mark 10 years since we announced Alphabet. Been thinking about the incredible growth in our new businesses since then – Cloud, YouTube, Play, Subscriptions etc. To give a…
— Sundar Pichai (@sundarpichai) July 23, 2025
Earnings per share came in at $2.31, above the $2.18 forecast.
1/ Q2 was a standout quarter with robust growth across the company. As we showed at I/O, we’re leading at the frontier of AI and shipping at an incredible pace.
Search and YouTube saw strong revenue growth.
And Cloud had another quarter of strong growth in revenues +…
— Sundar Pichai (@sundarpichai) July 23, 2025
The tech giant’s advertising business showed resilience, with Google advertising revenue reaching $71.34 billion, compared to the $69.69 billion anticipated. YouTube advertising revenue also exceeded expectations, hitting $9.8 billion versus the $9.56 billion projected.
More from Google's Q2 Earnings: AIOs now with 2B users, AI Mode with 100M monthly active users, and Gemini now with 450M active monthly users:
"Pichai shared that AI Overviews — a Google Search feature offering an AI summary of search results available in 200 countries and… pic.twitter.com/ovzUXkiJFP
— Glenn Gabe (@glenngabe) July 24, 2025
Google’s cloud computing division continued its impressive growth, with revenue increasing 32% year-over-year to $13.62 billion, surpassing the $13.11 billion expected by analysts. CEO Sundar Pichai highlighted the company’s advancements in artificial intelligence (AI) as a key driver of its success.
Alphabet surpasses expectations in Q2
“AI is positively impacting every part of the business, driving strong momentum,” Pichai said in a statement. Google’s AI features, such as AI Overviews and AI Mode, have gained significant traction, with AI Overviews now boasting over 2 billion monthly users globally, up from 1.5 billion last quarter. The company’s AI chatbot, Gemini, has also attracted more than 450 million monthly active users.
However, Alphabet’s strong performance came with a surprise announcement: the company raised its capital expenditure forecast for 2025 to $85 billion, a $10 billion increase from its previous projection in February. This move is aimed at supporting the growing demand for Google’s cloud products and services and maintaining its competitive edge in the AI industry. Despite the higher spending plans, Alphabet’s finance chief, Anat Ashkenazi, expressed confidence in the company’s future, stating that third-quarter revenue “could see a tailwind” from factors such as strong ad spending during the U.S. elections in late 2024.
Alphabet’s “Other Bets” segment, which includes ventures like self-driving car unit Waymo and life sciences unit Verily, reported revenues of $373 million, up from $365 million a year ago, although it also recorded a loss of $1.25 billion, an increase from the $1.13 billion loss in the previous year. The company’s total operating expenses rose 20% to $26.1 billion, partly due to legal costs, including a $1.4 billion charge related to a settlement with the Texas Attorney General over a data privacy lawsuit. In summary, Alphabet’s second-quarter results demonstrate the company’s strong position in the advertising, cloud computing, and AI markets, despite the challenges posed by increased competition and regulatory scrutiny.
