Google CEO Sundar Pichai gestures to the crowd during Google’s annual I/O developers conference in Mountain View, California on May 20, 2025.
David Paul Morris | Bloomberg | Getty Images
Alphabet reported second-quarter results on Wednesday that beat on revenue and earnings expectations, but the company said it would raise its capital investments by $10 billion in 2025.
Shares of the company were down slightly in after hours trading Wednesday.
Here’s how the company did, compared with estimates from analysts polled by LSEG:
- Revenue: $96.43 billion vs. $94 billion estimated
- Earnings per share: $2.31 vs. $2.18 estimated
Wall Street is also watching several other numbers in the report:
- YouTube advertising revenue: $9.8 billion vs. $9.56 billion, according to StreetAccount
- Google Cloud revenue: $13.62 billion vs. $13.11 billion, according to StreetAccount
- Traffic acquisition costs (TAC): $14.71 billion vs. $14.18 billion, according to StreetAccount
The company’s overall revenue grew 14% year over year, higher than the 10.9% Wall Street expected.
Alphabet is going to spend more on AI in 2025 than it anticipated. In February, the company said it expected to invest $75 billion in capital expenditures in 2025 as it continues to expand on its AI strategy. That was already above the $58.84 billion that Wall Street expected at the time.The company raised that figure on Wednesday to $85 billion, saying it was raising the figure due to “strong and growing demand for our Cloud products and services.”
Alphabet’s search and advertising units still showed growth despite artificial intelligence competition heating up. The company’s search unit brought in $54.19 billion during the quarter and its advertising revenue grew to $71.34 billion — up from $64.61 billion the year prior.
Google’s YouTube advertising revenue came in at $9.79 billion, higher than Wall Street expected.
This is breaking news. Please check back for updates.
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