Google parent's Q2 revenue jumps to $96 B amid AI boom
What's the story
Alphabet, the parent company of Google, has reported better-than-expected second-quarter results for 2025. The tech giant's revenue and earnings surpassed Wall Street expectations, with a total revenue of $96.43 billion against the expected $94 billion. Alphabet also announced an increase in its capital investment budget by $10 billion for 2025, raising it from $75 billion to $85 billion. This increase is attributed to strong demand for its Cloud products and services.
Financial highlights
Alphabet's overall revenue grew by 14% year-on-year
Alphabet's overall revenue grew by 14% year-on-year, exceeding the expected 10.9%. The company's cloud computing business also performed well, raking in $13.62 billion—32% more than last year. This comes as OpenAI recently announced plans to use Google's cloud infrastructure for its popular ChatGPT service.
Business performance
Search and advertising units continued to grow
Despite the rising competition in AI, Alphabet's search and advertising units continued to grow in Q2. The search unit generated $54.19 billion during the quarter while advertising revenue rose to $71.34 billion—about 10.4% more than last year's $64.61 billion. YouTube's ad revenue also exceeded expectations at $9.8 billion against an anticipated $9.56 billion.
User growth
Google's AI search product now has over 2 billion users
Google's AI search product, AI Overviews, now has over two billion monthly users across more than 200 countries and territories. The Gemini app with the company's AI chatbot also crossed 450 million monthly active users. These numbers were shared by Alphabet CEO Sundar Pichai during Wednesday's earnings call.