# Alphabet Inc. (GOOG, GOOGL) Q2 2025 Financial Results Summary
Alphabet Inc. (NASDAQ: GOOG, GOOGL) announced its financial results for the second quarter of 2025 on July 23, 2025.
## Key Financial Highlights
– **Consolidated Revenues**:
– **Q2 2025**: $96.4 billion
– Increase of **14%** year over year (remains constant at **13%** in constant currency).
– Growth driven by Google Search & other, YouTube ads, Google subscriptions, platforms, devices, and Google Cloud.
– **Google Services Revenues**:
– **Q2 2025**: $82.5 billion
– Increased by **12%** compared to Q2 2024.
– **Google Cloud Revenues**:
– **Q2 2025**: $13.6 billion
– Increased by **32%** year over year.
– **Operating Income**:
– **Q2 2025**: $31.3 billion
– Increased by **14%**, with an operating margin of **32.4%**.
– **Net Income**:
– **Q2 2025**: $28.2 billion
– Increased by **19%** compared to Q2 2024.
– **Earnings Per Share (EPS)**:
– **Diluted EPS for Q2 2025**: $2.31
– Increased by **22%** year over year.
– **Operating and Financial Efficiencies**:
– Operating margin improved, helped by revenue growth and cost efficiencies, despite legal settlements affecting finances.
## Segment Revenues
– **Google Search & other**:
– **Q2 2025**: $54.2 billion, up from $48.5 billion in Q2 2024 (increase of **12%**).
– **YouTube Ads**:
– **Q2 2025**: $9.8 billion, up from $8.7 billion in Q2 2024 (increase of **12%**).
– **Google Subscriptions, Platforms, and Devices**:
– **Q2 2025**: Revenue rose to $11.2 billion, increased from $9.3 billion in Q2 2024 (increase of **20%**).
– **Google Cloud**:
– **Operating Income** (Q2 2025): $2.8 billion, up from $1.2 billion in Q2 2024 (increase of **141%**).
## Other Financial Metrics
– **Total Operating Expenses**: Increased to $65.2 billion from $57.3 billion, with costs attributed primarily to research and development as well as sales and marketing.
– **Cash and Cash Equivalents**:
– Decreased to $21 billion as of June 30, 2025, from $23.5 billion as of December 31, 2024.
– **Stock Repurchase**: The company repurchased **$13.6 billion** of its stock.
– **Dividends**: Declared dividend payments totaling **$2.5 billion** in Q2 2025.
## Workforce and Investments
– **Number of Employees**:
– Increased from 179,582 in Q2 2024 to 187,103 in Q2 2025.
– **Capital Expenditures**: Anticipated increase in capital expenditures to approximately **$85 billion** for 2025 due to investment in AI and cloud infrastructure.
## Looking Forward
– CEO Sundar Pichai emphasized a strong focus on AI advancements and expressed optimism for future growth powered by robust demand across various business segments.
Overall, Alphabet Inc. reported significant growth across all core business areas, with a notable increase in Google Cloud services, showcasing the company’s expanded technological capabilities and strategic investments for future growth.
### CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts, unaudited)
| Quarter Ended June 30 | 2024 | 2025 | Year To Date June 30 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenues | $84,742 | $96,428 | $165,281 | $186,662 | |
| Costs and expenses: | |||||
| Cost of revenues | 35,507 | 39,039 | 69,219 | 75,400 | |
| Research and development | 11,860 | 13,808 | 23,763 | 27,364 | |
| Sales and marketing | 6,792 | 7,101 | 13,218 | 13,273 | |
| General and administrative | 3,158 | 5,209 | 6,184 | 8,748 | |
| Total costs and expenses | 57,317 | 65,157 | 112,384 | 124,785 | |
| Income from operations | 27,425 | 31,271 | 52,897 | 61,877 | |
| Other income (expense), net | 126 | 2,662 | 2,969 | 13,845 | |
| Income before income taxes | 27,551 | 33,933 | 55,866 | 75,722 | |
| Provision for income taxes | 3,932 | 5,737 | 8,585 | 12,986 | |
| Net income | $23,619 | $28,196 | $47,281 | $62,736 | |
| Basic net income per share | $1.91 | $2.33 | $3.82 | $5.16 | |
| Diluted net income per share | $1.89 | $2.31 | $3.78 | $5.12 | |
| Number of shares used in basic earnings per share calculation | 12,343 | 12,122 | 12,379 | 12,153 | |
| Number of shares used in diluted earnings per share calculation | 12,495 | 12,198 | 12,511 | 12,245 |
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### CONSOLIDATED BALANCE SHEETS
(In millions, except par value per share amounts)
| As of | December 31, 2024 | June 30, 2025 |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $23,466 | $21,036 |
| Marketable securities | 72,191 | 74,112 |
| Total cash, cash equivalents, and marketable securities | 95,657 | 95,148 |
| Accounts receivable, net | 52,340 | 55,048 |
| Other current assets | 15,714 | 16,020 |
| Total current assets | 163,711 | 166,216 |
| Non-marketable securities | 37,982 | 52,574 |
| Deferred income taxes | 17,180 | 19,289 |
| Property and equipment, net | 171,036 | 203,231 |
| Operating lease assets | 13,588 | 14,255 |
| Goodwill | 31,885 | 32,335 |
| Other non-current assets | 14,874 | 14,153 |
| Total assets | $450,256 | $502,053 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $7,987 | $8,347 |
| Accrued compensation and benefits | 15,069 | 12,168 |
| Accrued expenses and other current liabilities | 51,228 | 52,039 |
| Accrued revenue share | 9,802 | 9,787 |
| Deferred revenue | 5,036 | 4,969 |
| Total current liabilities | 89,122 | 87,310 |
| Long-term debt | 10,883 | 23,607 |
| Income taxes payable, non-current | 8,782 | 10,027 |
| Operating lease liabilities | 11,691 | 11,952 |
| Other long-term liabilities | 4,694 | 6,241 |
| Total liabilities | 125,172 | 139,137 |
| Commitments and contingencies | ||
| Stockholders’ equity: | ||
| Preferred stock, $0.001 par value per share, 100 shares authorized; no shares issued and outstanding | 0 | 0 |
| Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share: 300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,211 (Class A 5,835, Class B 861, Class C 5,515) and 12,104 (Class A 5,816, Class B 849, Class C 5,439) shares issued and outstanding | 84,800 | 89,283 |
| Accumulated other comprehensive income (loss) | -4,800 | -2,127 |
| Retained earnings | 245,084 | 275,760 |
| Total stockholders’ equity | 325,084 | 362,916 |
| Total liabilities and stockholders’ equity | $450,256 | $502,053 |
