Alphabet Reports Strong Q2 Results, Raises 2025 Capex Forecast to $85B
Alphabet Inc. (NASDAQ: GOOGL), Google’s parent company, reported better-than-expected second-quarter earnings on Wednesday and raised its 2025 capital expenditure forecast.
Shares gained over 1% in after-hours trading, rebounding from an earlier decline of more than 2%.
Earnings per share came in at $2.31, surpassing Wall Street’s estimate of $2.17. Revenue reached $96.43 billion, ahead of the expected $93.9 billion.
The company now anticipates $85 billion in capital spending for 2025, a notable increase from its previous estimate of $75 billion and above analyst expectations of $73.31 billion. This represents a 13.3% increase over last year, driven by Alphabet’s expanded investments in AI and cloud infrastructure.
CEO Sundar Pichai described the quarter as showing “robust growth across the company,” with strong performance in Search, YouTube, and the Cloud segment, which now boasts an annual run-rate exceeding $50 billion.
In the earnings call, Pichai emphasized Alphabet’s advancements in AI. He noted that AI Mode has launched in the U.S. and India, and AI Overviews now serve over 2 billion monthly users across 200+ countries and territories, supporting 40 languages. These AI Overviews are driving more than 10% additional search queries globally for relevant query types, with growth accelerating.
He also shared updates on Waymo, Alphabet’s autonomous vehicle unit, which has now logged over 100 million autonomous miles on public roads. Waymo is conducting trials in more than 10 cities, including New York and Philadelphia, as it continues to scale its operations.
