Google’s AI strategy is working, says Sundar Pichai as Alphabet reports strong Q2 results

By Ayushi Jain | Updated on 24-Jul-2025

HIGHLIGHTS

Alphabet has reported strong financial results for the second quarter of 2025.

“AI is positively impacting every part of the business, driving strong momentum," CEO Sundar Pichai said.

Pichai also highlighted the success of new AI-powered features like AI Overviews and AI Mode in Google Search.

Google’s AI strategy is working, says Sundar Pichai as Alphabet reports strong Q2 results

Ayushi Jain

24-Jul-2025

Alphabet, the parent company of Google, has reported strong financial results for the second quarter of 2025. For the quarter ending June 30, the company reported a 14 percent year-over-year increase in revenue, reaching $96.4 billion. Net income rose by 19 percent, while earnings per share also saw a 22 percent jump to $2.31.

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The company’s core services, including Google Search, YouTube ads and subscriptions, continued to perform well. Google Services alone brought in $82.5 billion in revenue, growing 12 percent from the previous year.

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Google Cloud stood out with the highest growth rate among all segments. Revenue for the cloud business jumped 32 percent to $13.6 billion.

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“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,” said Sundar Pichai, CEO of Alphabet. “AI is positively impacting every part of the business, driving strong momentum.”

Pichai also highlighted the success of new AI-powered features like AI Overviews and AI Mode in Google Search, saying they are performing well. YouTube and subscriptions also remained strong contributors.

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Alphabet’s total operating income increased 14 percent, and the company reported an operating margin of 32.4 percent. This was supported by revenue growth and better cost efficiencies, although a portion was offset by a legal settlement charge. To keep up with rising demand for its cloud and AI offerings, Alphabet plans to increase capital spending to approximately $85 billion in 2025.

Alphabet’s strong Q2 results show that its AI-driven strategy is paying off across multiple business areas.

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Ayushi Jain

Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile