Alphabet Surpasses Revenue Forecasts with $96.4B in Q2 2025, Driven by AI and Cloud Growth

Alphabet Inc. (GOOGL) reported a robust $96.4 billion in revenue for Q2 2025, eclipsing Wall Street's $94 billion projection. The tech giant's strategic focus on artificial intelligence and cloud services fueled the outperformance, with adjusted earnings per share reaching $2.31 on $81.2 billion in ex-TAC revenue.

Google's AI investments are yielding measurable returns across Core products. Search revenue grew at double-digit rates, while newer features like AI Overviews gained traction. YouTube and subscription services maintained strong momentum, and Cloud division crossed a $50 billion annual revenue run-rate.

CEO Sundar Pichai emphasized AI's transformative impact: 'Every business segment benefits from our AI capabilities, creating sustainable growth vectors.' The announcement comes amid investor scrutiny of rising capital expenditures, now projected at $85 billion.