Alphabet Surpasses Q2 2025 Earnings Estimates and Amplifies AI Investment to $85B
Alphabet showcased impressive Q2 2025 results, with a reported revenue of $96.43 billion, marking a 14% increase year-over-year and surpassing Wall Street’s forecast of $94 billion. The tech behemoth announced earnings per share of $2.31, outperforming the anticipated $2.18, propelled by a solid performance across Google Search, YouTube, and Cloud services.
The standout performer was Google Cloud, which generated $13.62 billion in revenue, signifying a 32% increase from the previous year. YouTube advertising revenue also made a strong impression with $9.8 billion, marking a 13% increase year-over-year. CEO Sundar Pichai emphasized that AI Overviews now engages over 2 billion monthly users across more than 200 countries.
Despite the strong performance, Alphabet substantially escalated its capital expenditure forecast for 2025 to $85 billion, a $10 billion increase from February, attributing this to the “strong and growing demand for our Cloud products and services.” The company anticipates further escalating spending in 2026 to bolster its AI infrastructure expansion.
Source: CNBC