Google parent Alphabet disclosed its financial performance for the second quarter of the year, revealing a record total revenue of $96.42 billion for the three months ending June 2025. This represents a 14% increment when compared to the $84.7 billion generated in the second quarter of 2024. The company’s operating income for the recent quarter stood at $31.27 billion, with net income recorded at $28.19 billion, an improvement over $23.62 billion reported in the same quarter of the preceding year. The company’s diluted EPS for the quarter amounted to $2.31.
“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,” Sundar Pichai, Alphabet CEO, announced in an official statement.
To be precise, the second quarter of the year saw YouTube’s advertising revenue amount to $9.79 billion, marking a growth from $8.66 billion in the prior year’s comparable period, as well as beating analyst estimates of $9.6 billion. YouTube is continuing efforts to secure a larger share of television advertising budgets, particularly as its presence on TV screens has expanded significantly. Recent data from Nielsen indicated that YouTube comprised 12.4% of total television viewing time for three consecutive months. The company’s digital advertising revenue collectively reached $71.34 billion, rising from $64.61 billion in the previous year, marking a growth of 10.4%.
Google Cloud reported revenue of $13.62 billion, compared to $10.35 billion a year ago and rising by nearly 32% on an annual basis. The unit’s operating income was $2.83 billion, also surpassing projections. The company’s “Google subscriptions, platforms, and devices” category, which encompasses hardware, the Play Store, and non-advertising YouTube revenues, generated $11.20 billion, up from $9.31 billion in the same quarter last year. The “Other Bets” segment, which includes various emerging businesses such as the Waymo self-driving car project, generated $373 million in revenue, a marginal increase from $365 million in the first quarter of 2024. However, this segment recorded a loss of $1.24 billion, widening from a $1.12 billion loss in the corresponding quarter of the previous year.
The company’s Search division generated $54.19 billion during the quarter. Alphabet also stated that AI Overviews, its AI-powered search product that summarizes results, now has over two billion monthly users across more than 200 countries and territories, an increase from 1.5 billion monthly users in the previous quarter. The Gemini application, which features the company’s AI chatbot, now serves over 450 million monthly active users, with daily requests growing over 50% from the first quarter.
AI, as expected, served as a catalyst for Alphabet’s revenue growth in the second quarter, permeating various divisions of the company. Google’s core Search business, a primary revenue generator, experienced double-digit growth, directly benefiting from the integration of AI functionalities. New features such as “AI Overviews,” which provide AI-generated summaries of search results, have rapidly expanded their reach, now serving over two billion monthly users across more than 200 countries and 40 languages. Similarly, “AI Mode,” an AI-driven chat interface for search queries, has garnered over 100 million monthly active users in the U.S. and India. These are increasing user engagement and leading to a higher volume of queries, as AI enhances the search experience and allows for more complex information retrieval, particularly among younger demographics.
