Alphabet (GOOGL)’s latest quarterly earnings report reveals that the Google developer saw $96.4B in revenue last quarter, beating expectations. Wall Street forecasted $94B in revenue for Alphabet, and were surprised to see such a strong return in earnings.
The company’s various efforts in AI proved pivotal for Alphabet in Q2 2025, with Google advancing its investments and efforts in that sector. Google’s Cloud services and advertising also outperformed expectations. For Q2 2025, Google saw adjusted earnings per share (EPS) of $2.31 on revenue excluding traffic acquisition costs (TAC) of $81.2 billion. Analysts were anticipating Adj. EPS of $2.17 on revenue ex-TAC of $79.6 billion. The company posted revenue of $71.3 billion during the same period last year.
“AI is positively impacting every part of the business, driving strong momentum,” CEO Sundar Pichai said in a statement. “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.”
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Despite the successful report, shareholders were left worrying about the company raising its forecast for capital expenditures. Indeed, Alphabet said capital expenditures will climb to $85 billion. Google previously projected $75 billion. While AI investing has seen praise from investors through big tech, the increase in forecast investments by Alphabet appears to be causing a stir. This year, the company is expected to drop $75 billion expanding its AI capabilities, including on massive data centers running on both its own home-grown chips and Nvidia’s processors.
Furthermore, Alphabet (GOOGL) is still facing worries of consequences in its antitrust lawsuit for Google Search. The DOJ won the legal battle and a ruling is expected to come in the next month. Many analysts were concerned that a punishment for Alphabet could run so high that the company could be forced to sell its Chrome web browser, which is a huge factor in the company’s profits.
Shares in Alphabet (GOOGL) stock fell as markets closed by around 2% following the successful earnings report.
