Google Posts Stellar Q2 Revenue of $96.4 Billion — AI Fuels Broad-Based Growth

TradingKey - Alphabet (GOOG, GOOGL) reported its second-quarter 2025 earnings on July 23, delivering a strong performance across the board. The company posted total revenue of $96.4 billion, a 14% year-over-year increase (13% in constant currency), surpassing widespread analyst expectations and highlighting robust momentum in both core and emerging businesses.

Revenue from Google Services rose 12% to $82.5 billion, with double-digit growth across key segments: Search and other, YouTube ads, Google subscriptions, and platform & devices.

Google Cloud stood out as a major growth engine, generating $13.6 billion in revenue, a 32% year-over-year increase. The segment’s annualized revenue run rate has now surpassed $50 billion. This growth was primarily driven by strong adoption of Google Cloud Platform (GCP), AI infrastructure, and generative AI solutions.

Overall operating income rose 14%, with an operating margin of 32.4%. Net income increased 19%, and diluted earnings per share reached $2.31, up 22% from the prior year.

CEO Sundar Pichai said: “We saw broad acceleration across our businesses this quarter, with AI deeply integrated into our products and driving growth.” He highlighted the strong performance of AI Overviews and AI Mode in Search, and emphasized continued expansion in YouTube and subscription services.

Buoyed by confidence in the cloud and AI outlook, Alphabet announced it is raising its 2025 capital expenditure guidance to approximately $85 billion, significantly increasing investments in data centers and AI infrastructure.

This earnings report further underscores Google’s leading position in commercializing AI at scale, reigniting investor confidence in its long-term growth potential.