Alphabet, Google’s parent firm, announced its financial results for Q2 2025 on July 23, reporting strong revenue growth of 14% year-over-year (13% in constant currency), reaching $96.4 billion. Google Search, YouTube ads, and Google Cloud each delivered double-digit growth this quarter.
CEO Sundar Pichai 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.”
Despite the strong numbers, Google’s stock dipped shortly after the announcement. It bounced back only after Sundar Pichai elaborated on the results. Investors were reportedly concerned about the company’s announcement that it would increase capital expenditures by $10 billion in 2025.
Reflecting on the growing demand for Google’s Cloud offerings, the CEO explained the need to stretch expenditures, saying, “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…”
Google Search delivered $54.19 billion in revenue, marking a 14% YoY rise, driven by features like AI Overviews and AI Mode that have boosted user engagement. “We continue to see strong performance in YouTube as well as subscriptions offerings,” said Mr. Pichai, as YouTube ads brought in $9.8 billion, a 13% increase.
Google employee strength also experienced a hike of 4%, reaching 1.87 lakh. Its Q2 metrics and plan to ramp up investment in AI and cloud infrastructure reflect the growing demand for AI products across the globe, and Alphabet appears set to double down on the opportunity.
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