Alphabet Inc., the parent company of Google, reported $96.4 billion in revenue for Q2 2025, surpassing Wall Street expectations and marking a 14% year-over-year increase. The performance reflects strong momentum across search, cloud, and AI-driven services.
Strong Gains Across Key Divisions
- Search and Advertising generated $71.3 billion, with YouTube and core search leading growth.
- Google Cloud posted a 32% jump, reaching $13.6 billion, outperforming projections.
- Net income climbed 19% to $28.2 billion, with earnings per share at $2.31, beating the $2.18 consensus.
CEO Sundar Pichai attributed the results to the continued integration of AI technologies, including Google’s “AI Mode” and “AI Overviews,” which are now embedded across its major platforms.
Capex Surge Raises Investor Questions
Despite the earnings beat, Alphabet announced it will increase its 2025 capital expenditures to $85 billion, up from a previous forecast of $75 billion. The bulk of this investment targets AI infrastructure and data centers, a move welcomed for long-term growth but seen as a short-term margin risk by some analysts.
Market Response
Alphabet shares were volatile in after-hours trading, initially dipping before stabilizing as investors weighed the balance between strong operational results and rising costs.
Sources: WSJ, Investing.com, The Verge, Techmeme, Business Insider
