Alphabet Inc Class C
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did GOOG Beat Earnings? Q2 2025 Results
Alphabet closed out Q2 2025 with a commanding performance, posting diluted EPS of $2.31 against a consensus estimate of $2.1992 — a 5.04% beat — while revenue climbed 13.8% year over year to $96.43 billion, topping the $93.98 billion Wall Street had penciled in. The standout driver was Google Cloud, which surged 32% to $13.62 billion as enterprises raced to deploy AI infrastructure and generative AI solutions, pushing Cloud's annual revenue run-rate past the $50 billion mark. Google Search remained resilient at $54.19 billion, and YouTube ads rose to $9.80 billion, reinforcing the breadth of Alphabet's advertising engine. Net income grew 19% to $28.20 billion, with a 32.4% operating margin holding firm despite a legal settlement charge. Investors <a href="https://247wallst.com/investing/2025/10/29/live-alphabet-googl-up-2-before-earnings-will-shares-soar-after-hours/">watching the stock closely</a> ahead of the report will note that management also lifted its 2025 capital expenditure plan to roughly $85 billion, signaling that the company's AI infrastructure buildout is accelerating, not plateauing.
- Double-digit revenue growth across Google Search, YouTube ads, subscriptions/platforms/devices, and Google Cloud
- Google Cloud Platform growth led by core GCP products, AI Infrastructure, and Generative AI Solutions
- Strong advertising momentum in Search and YouTube
- Continued efficiencies in the expense base supporting operating margin
- Other income boosted by $1.3 billion net gain on equity securities
“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. 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.”
Google CEO, on the earnings call
Forward Guidance & Outlook
Alphabet is increasing its 2025 capital expenditure investment to approximately $85 billion, reflecting strong and growing demand for its Cloud products and services and the opportunity in AI infrastructure.
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Figures from SEC filings and company reports. Not investment advice.