Alphabet's Q2 Revenue Surges 14% to 964.28 Billion Dollars, Driving Stock Price Up 3%

Alphabet, the parent company of Google, reported its second-quarter financial results for the fiscal year 2025. The company's total revenue for the quarter was 964.28 billion dollars, marking a 14% increase from the same period last year. When adjusted for currency fluctuations, the growth rate was 13%. The net profit, according to U.S. Generally Accepted Accounting Principles (GAAP), was 281.96 billion dollars, a 19% increase from the previous year. The diluted earnings per share (EPS) for the quarter was 2.31 dollars, up from 1.89 dollars in the same period last year.

Alphabet's second-quarter revenue and EPS both exceeded analysts' expectations. YouTube advertising and Google Cloud revenues also surpassed forecasts, driving a post-market stock price increase of over 3%. The company's operating profit for the quarter was 312.71 billion dollars, with an operating margin of 32%. This is consistent with the previous year's operating margin of 32%.

Breaking down the revenue by business segments, Google's core services, which include search and other advertising revenues, generated 541.90 billion dollars, up from 485.09 billion dollars in the same period last year. YouTube advertising revenue was 97.96 billion dollars, an increase from 86.63 billion dollars in the previous year. Google's network revenue, which comes from partner sites through the AdSense program, was 73.54 billion dollars, slightly down from 74.44 billion dollars in the same period last year. Google's total advertising revenue for the quarter was 713.40 billion dollars, up from 646.16 billion dollars in the previous year. Subscription, platform, and hardware revenues were 112.03 billion dollars, up from 93.12 billion dollars in the same period last year. Google Cloud revenue was 136.24 billion dollars, up from 103.47 billion dollars in the previous year. The "Other Bets" segment, which includes various experimental projects, generated 3.73 billion dollars in revenue, up from 3.65 billion dollars in the previous year.

Regionally, Alphabet's revenue from the United States was 460.63 billion dollars, a 12% increase from the same period last year. Revenue from the EMEA region (Europe, Middle East, and Africa) was 282.62 billion dollars, a 14% increase from the previous year. Revenue from the Asia-Pacific region was 164.80 billion dollars, a 19% increase from the same period last year. Revenue from other regions in the Americas was 57.35 billion dollars, a 16% increase from the previous year.

Alphabet's total costs and expenses for the quarter were 651.57 billion dollars, up from 573.17 billion dollars in the previous year. This includes cost of revenue at 390.39 billion dollars, up from 355.07 billion dollars in the previous year, research and development expenses at 138.08 billion dollars, up from 118.60 billion dollars in the previous year, sales and marketing expenses at 71.01 billion dollars, up from 67.92 billion dollars in the previous year, and general and administrative expenses at 52.09 billion dollars, up from 31.58 billion dollars in the previous year. Other income (net) for the quarter was 26.62 billion dollars, a significant increase from 1.26 billion dollars in the previous year.

Alphabet's net cash provided by operating activities for the quarter was 277.47 billion dollars, up from 266.40 billion dollars in the previous year. Free cash flow for the quarter was 53.01 billion dollars, down from 189.53 billion dollars in the previous quarter. As of June 30, 2025, Alphabet held 951.48 billion dollars in cash, cash equivalents, and marketable securities, down from 956.57 billion dollars as of December 31, 2024. The company employed 187,103 full-time employees globally as of June 30, 2025, up from 179,582 as of June 30, 2024.