Alphabet Reports Strong Q2 Earnings, Driven by AI and Cloud Growth

Alphabet Inc., the parent company of Google, announced robust second-quarter earnings on June 16, 2025, fueled by rapid growth in its artificial intelligence (AI) and cloud computing divisions. The tech giant posted revenue of $95.7 billion, a 16% increase compared to the same quarter last year, surpassing Wall Street expectations.

The company’s Google Cloud platform saw revenue jump 28% year-over-year to $23.4 billion, driven by increased adoption of AI-powered services and infrastructure by enterprise customers globally. Alphabet’s investments in generative AI and machine learning tools continue to attract a growing client base across industries such as healthcare, finance, and retail.

Advertising revenue, which comprises the bulk of Alphabet’s income, grew 10% despite challenges from evolving privacy regulations and increased competition. Search and YouTube ads remained strong, supported by improvements in targeting capabilities powered by AI algorithms.

CEO Sundar Pichai emphasized the company’s focus on innovation and responsible AI development during the earnings call. “We are committed to building AI technologies that empower people and businesses while ensuring privacy and security,” Pichai said.

Alphabet’s “Other Bets” segment, including projects like Waymo autonomous vehicles and Verily life sciences, reported incremental progress but continued to operate at a loss.

The company increased its R&D spending by 22% to $34 billion, reflecting its long-term commitment to emerging technologies such as quantum computing and AI.

Alphabet’s shares rose 3.5% in after-hours trading following the earnings announcement, reflecting investor confidence in its diversified growth strategy.

Looking ahead, the company plans to expand AI integration across all its products and services, aiming to solidify its leadership position in the evolving tech landscape.