Alphabet Inc. (NASDAQ:GOOG) reported revenue of $96.4 billion for the second quarter ended June 30, 2025, marking a 14 percent increase from $84.7 billion in the same quarter last year. Growth was led by continued expansion across Google Search, YouTube advertising, subscription services, and Google Cloud.
According to the earnings release filed on July 23, Google Services generated $82.5 billion in revenue, representing a 12 percent increase from the prior-year period. Within this segment, Google Search and other advertising services generated $54.2 billion, compared to $48.7 billion in the prior year. YouTube advertising revenue rose to $9.8 billion from $7.7 billion. Subscriptions, platforms, and devices revenue increased to $11.2 billion from $9.3 billion.
Google Cloud revenue rose 32 percent to $13.6 billion, up from $10.3 billion in Q2 2024. The company cited higher demand for infrastructure and AI platforms. Operating income for Google Cloud more than doubled to $2.8 billion from $1.2 billion, with improved margin performance.
Speaking on the results, Sundar Pichai, CEO, said, “We had a standout quarter, with robust growth across the company. We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well.”
Net income for the quarter rose 19 percent to $28.2 billion, compared to $23.5 billion a year earlier. Operating income increased to $31.3 billion, up from $26.3 billion, while the operating margin expanded to 32.4 percent from 31 percent. Earnings per share rose 22 percent to $2.31, up from $1.89 in Q2 2024.
The company’s “Other Bets” segment, which includes non-core ventures such as Waymo and Verily, reported revenue of $373 million and an operating loss of $1.25 billion. Unallocated corporate costs at the Alphabet level totaled a loss of $3.37 billion.
Alphabet reported a total headcount of 187,103 as of June 30, compared to 179,582 a year earlier. Capital expenditures for the quarter more than doubled to $22.4 billion, up from $10.9 billion in the second quarter of 2024. The company stated that the rise in capital expenditures reflects ongoing investment in technical infrastructure, including data centers and servers, to support artificial intelligence services and Google Cloud.
“We continue to see strong performance in YouTube as well as subscriptions offerings. And Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run-rate is now more than $50 billion. With this strong and growing demand for our Cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead,” Pichai further added.
The company ended the quarter with $95.1 billion in cash, cash equivalents, and marketable securities. Alphabet issued $12.5 billion in senior unsecured notes during the quarter for general corporate purposes, including capital expenditures, buybacks, and acquisitions.
The company also declared a quarterly cash dividend of $0.21 per share, payable on September 15 to shareholders of record as of September 8, 2025.
