Google reported Q2 2025 earnings today, which showed Google's ad revenue was up again year-over-year, with an increase of 10.4%, and overall revenue is also up 13.8%.
Alphabet reports Q2 revenue up 14% YoY to $96.43B, net income up 19% to $28.2B, operating income up 14% to $31.27B, and Services revenue up 12% to $82.5B. Alphabet reports YouTube's Q2 ad revenue rose 13% YoY to $9.8B, vs. $9.56B est., and Google's advertising revenue reached $71.3B, up from $64.6B a year ago.
If you want to compare Q1 2025 to Q2 2025, you will see ad revenue was up 6.6%, overall revenue was up 6.6% and profit was up by 2.17%.
The stock price is down 1.4% in after hours trading, then after the earnings call started, the stock price is up.
Sundar Pichai, Google's CEO, 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. 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 subscription 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.
Here is a chart plotting Google's overall revenue, then ad revenue and then profit over the past several quarters:
Here is the snippet from the earnings report:
The earnings call will be at 4:30 pm ET at:
Here are some quick notes from the call:
- Queries and commercial queries continue to grow year over year. AI features contribute this, leading searchers to search more, especially for younger users.
- AI Overviews are generating 10% more queries, for the queries AI Overviews show up for.
- AI Mode is growing, now in US and India and new features will be released fast
- AI Max leads to 40% more conversions, said Philipp Schindler
- Google's AI Overviews have 2B monthly users, AI Mode 100M in the US and India
2/ Strong growth in AI usage across our products and platforms:
— Sundar Pichai (@sundarpichai) July 23, 2025
We’re processing 980 trillion+ monthly tokens across our products and APIs (up from 480T at I/O in May)
AI Overviews in Search now has 2B+ monthly users across 200 countries/territories and 40 languages
450M…
4/ Great quarter, thanks to our employees around the world.
— Sundar Pichai (@sundarpichai) July 23, 2025
Read a full transcript of my remarks from today’s earnings call: https://t.co/ncm6ESulac
Forum discussion at X.
