Alphabet Q2 Earnings Exceed Expectations: Is GOOG Stock a Good Buy?

Alphabet (GOOG) Q2 revenues rose 14% YoY to $96.4 billion, beating estimates, with per-share earnings at $2.31, ahead of $2.15 expected. Google Search revenues increased 11.7%, YouTube ad revenues rose 13% to $9.8 billion, and Google Cloud revenues surged 32% to $13.62 billion. Alphabet CEO Sundar Pichai called Q2 a "standout quarter" with robust growth across the company, driven by AI momentum.

Alphabet Inc. (GOOG) reported robust financial performance in the second quarter of 2025, with revenues rising 14% year-over-year to $96.4 billion, surpassing market expectations. The company's per-share earnings reached $2.31, which was ahead of the $2.15 expected. This strong performance was driven by significant growth in Google Search, YouTube, and Google Cloud revenues.

Google Search revenues increased by 11.7% to $31.5 billion, reflecting the continued expansion of AI-driven features and the growing popularity of AI Overviews and multi-modal Search. YouTube ad revenues surged by 13% to $9.8 billion, driven by the platform's continued dominance in streaming watch time and the growing adoption of YouTube Shorts. Google Cloud revenues surged by 32% to $13.62 billion, reflecting strong demand for the company's comprehensive AI product portfolio and AI infrastructure.

Alphabet CEO Sundar Pichai highlighted the role of AI in driving the company's growth, noting that AI is positively impacting every part of the business. The company's full-stack approach to AI, which includes AI infrastructure, world-class research, and products and platforms, has been crucial to its success. Pichai also noted the strong performance of the company's AI-powered products, such as the Gemini App, which has over 450 million monthly active users, and Google Vids, which reached nearly 1 million monthly active users.

Overall, Alphabet's Q2 2025 results reflect the company's continued dominance in the tech industry and its ability to leverage AI to drive growth across its businesses. The company's strong performance in the quarter sets the stage for continued growth in the coming quarters.

References:

[1] https://blog.google/inside-google/message-ceo/alphabet-earnings-q2-2025/