Alphabet Inc. has reported a 14% increase in revenues for the second quarter of 2025, reaching US$96.4 billion. The result is attributed to significant gains across its various segments, notably Google Services and Google Cloud.

Google Services, which includes Google Search, subscriptions, platforms, devices, and YouTube ads, saw a 12% rise in revenues, totalling US$82.5 billion. Meanwhile, Google Cloud experienced a 32% increase, with revenues hitting US$13.6 billion. The growth in the cloud segment was driven by advancements in Google Cloud Platform, AI Infrastructure, and Generative AI Solutions.

The company's total operating income also rose by 14%, with an operating margin of 32.4%. Alphabet's net income increased by 19%, and its earnings per share (EPS) climbed by 22% to US$2.31.

CEO Sundar Pichai said: "We had a standout quarter, with robust growth across the company. We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well. We continue to see strong performance in YouTube as well as subscriptions offerings. And Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run-rate is now more than $50 billion. With this strong and growing demand for our Cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead."

Alphabet has announced plans to increase its capital expenditures in 2025 to approximately US$85 billion, reflecting its commitment to expanding its cloud and AI capabilities.