Alphabet, the parent company of Google, delivered strong Q2 results for April to June 2025, surpassing expectations driven by growing AI-driven services and cloud computing demand. Enhanced profitability and increased capital expenditure signal long-term growth focus across key tech verticals.
Alphabet reported a Q2 revenue of $96.4 billion, marking a 14% year-over-year increase. The net profit rose 19% to $28.2 billion, or $2.31 per share. Much of this growth came from Google Cloud, which generated $13.6 billion in revenue, up 32% compared to the same quarter last year, with operating income reaching $2.83 billion. These results point to continued strength in Alphabet's core digital services and newer AI-powered solutions.
YouTube performed well with Q2 ad revenue of $9.8 billion, topping expectations. The steady digital advertising environment and user engagement trends supported this growth. Meanwhile, Alphabet’s Other Bets unit, including Waymo, posted $373 million in revenue, falling short of projections. Despite the miss, the segment remains critical to Alphabet’s innovation pipeline.
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Alphabet increased its capital expenditure plan to approximately $85 billion for the year, a $10 billion rise from earlier estimates. This investment reflects the company’s long-term confidence in cloud and AI-driven services. As enterprise clients move increasingly toward digital transformation, Alphabet aims to scale data centres and computing capacity to meet the surging demand.
On the day of the Q2 earnings report, Alphabet’s share price closed at $191.51, down 0.31% before markets closed. However, in after-market trading, the stock gained 1.72% as investors reacted positively to the results. Over the past month, Alphabet shares have risen 15%, reflecting strong market sentiment. Year-to-date movement has remained largely flat, with a 4% gain over the last 12 months.
Alphabet’s strong Q2 performance was led by significant gains across cloud, AI features, and YouTube, supporting revenue and profitability growth. Rising capital investment underlines the company’s aggressive push to scale future tech infrastructure while maintaining steady gains in its digital business segments.
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Published on: Jul 24, 2025, 2:48 PM IST
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