Today, Alphabet (Google"s parent company) announced earnings for the quarter ended June 30, 2025. Overall revenue was $96.4 billion, up 14% YoY, thanks to the strong performance of Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud. Each of these businesses delivered double-digit growth in Q2.
Google Cloud posted the strongest growth at 32% YoY, driven by the growing momentum of Google Cloud Platform (GCP), which includes AI Infrastructure and Generative AI Solutions. Its annual revenue run-rate is now more than $50 billion. In addition to revenue growth, Alphabet also posted strong margin improvement, reporting an operating income of $31.2 billion, up 32% YoY.
Sundar Pichai, Alphabet 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 subscriptions 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."
During the earnings call, Sundar Pichai also revealed that the Gemini App now has more than 450 million monthly active users and that daily requests grew by over 50% since the last quarter.
Despite ChatGPT’s explosive growth, Google appears unaffected so far, thanks to the strong financial performance of Google Search and the growing momentum of Gemini. However, it remains to be seen whether Google can hold its ground as ChatGPT increasingly attracts younger users who are turning to it over traditional Google searches.