Alphabet’s (GOOGL) latest quarterly revenue report reveals that Google developers have surpassed expectations, looking at $96.4 billion in revenue for the last quarter. Wall Street forecasts Alphabet’s revenue of $940 billion and was surprised to see such a strong profit in revenue.
The company’s various efforts in AI are crucial to the Alphabet in the second quarter of 2025, and Google is investing and working towards its sector. Google’s cloud services and advertising also exceeded expectations. For the second quarter of 2025, Google saw $2.31 in revenue excluding traffic acquisition costs (TAC) with earnings per share (EPS) of $2.31 (EPS) of $81.2 billion. Analysts were expecting adj. EPS is $2.17 with revenues of $79.6 billion. The company recorded revenue of $71.3 billion in the same period last year.
“AI has a positive impact on every part of the business and drives strong momentum,” CEO Sundar Pichai said in a statement. “Search offers double-digit revenue growth rates, and new features like AI overview and AI modes are working well. We continue to see strong performance in YouTube and subscription offerings. The cloud has seen significant increases in revenue, backlog and profitability.
Despite the successful reporting, shareholders were worried that the company would raise its forecasts for capital expenditures. In fact, Alphabet said capital expenditures would rise to $85 billion. Google previously predicted $75 billion. In AI investment, we have seen praise from investors through major technologies, but the rise in predictive investments by Alphabet appears to be upset. This year, the company is expected to cut $75 billion to expand AI capabilities, including large data centers running on both homemade chips and Nvidia processors.
Furthermore, Alphabet (GOOGL) still faces concerns about the consequences of an antitrust lawsuit for Google search. The DOJ wins the legal battle and the ruling is expected to arrive next month. Many analysts were concerned that the company could be forced to sell Chrome web browsers, as punishments for the alphabet could run very high. This is a major factor in the company’s profits.
Shares in Alphabet (GOOGL) stock fell as the market closed about 2% following a successful earnings report.
