Alphabet Inc., the parent company of Google, delivered a stronger-than-anticipated financial performance for the second quarter of 2025, suggesting its enormous investment in artificial intelligence is beginning to show real results — and that advertising revenue remains a powerful engine for the business.
The Mountain View, California-based tech giant reported Wednesday that it earned $112.11 billion, or $9.11 per share, during the April-June period. That’s a dramatic jump from the same quarter a year ago, when the company posted $28.2 billion, or $2.31 per share.
Total revenue climbed 24% to $119.8 billion, up from $96.43 billion during the same stretch last year. Analysts polled by FactSet had projected revenue of $117.06 billion on average, meaning Google cleared that bar with room to spare. While Google did not release an adjusted earnings figure comparable to analyst expectations of $2.88 per share, the company did report a net gain of $98 billion — largely the result of gains on equity investments, most notably in SpaceX, which went public in June.
CEO Sundar Pichai highlighted the role of AI in the company’s performance. “Our AI investments are redefining what’s possible across every part of our business,” he said in a statement.
Industry analyst Nate Elliott of Emarketer described the quarter’s results as “impressive,” pointing to AI as a standout factor. “On the consumer side, Gemini is now within a whisker of becoming Google’s third different 1 billion-user consumer AI product, alongside AI Overviews and AI Mode,” he said. “On the enterprise side, AI demand is driving enormous growth in the cloud business. And continued strong growth in search advertising backs up Google’s claim that AI is additive to search, not a replacement.”
As has been the pattern in recent quarters, digital advertising tied to Google’s dominant search platform was the primary driver of revenue growth. YouTube advertising also saw a boost, partly fueled by World Cup-related spending.
The company’s cloud division also posted strong gains, supported by an expanding AI portfolio that includes chips, models, data tools, security offerings, and agent platforms.
Following the earnings release, Alphabet’s stock rose $2.71 to $344.62 in after-hours trading.
