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GOOGL Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise
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Key Takeaways
GOOGL's Q2 EPS of $2.31 increases 22.2% year over year.
Google Cloud revenue surged 31.7% year over year to $13.62B.
Search, YouTube ads, and subscriptions all topped estimates, driving 13.8% revenue growth.
Alphabet’s (GOOGL - Free Report) second-quarter 2025 earnings of $2.31 per share beat the Zacks Consensus Estimate by 7.44% and grew 22.2% year over year. GOOGL shares were up roughly 3.3% in pre-market trading on Thursday, reflecting strong results.
Revenues of $96.43 billion increased 13.8% year over year (13% at constant currency). Net revenues, excluding total traffic acquisition costs (“TAC”) (the portion of revenues shared with Google’s partners and the amount paid to distribution partners and others who direct traffic to Google’s website), were $81.72 billion, which surpassed the consensus mark by 2.2%. The figure rose 14.5% year over year. TAC of $14.71 billion rose 9.8% year over year.
Google Cloud revenues surged 31.7% year over year to $13.62 billion and accounted for 14.1% of the quarter’s total revenues. The figure beat the Zacks Consensus Estimate by 4.24%.
GOOGL’s Services Ride on Search & YouTube
Google Services revenues increased 11.7% year over year to $82.54 billion and accounted for 85.6% of total revenues. The figure beat the Zacks Consensus Estimate by 3.28%.
Google advertising revenues rose 10.4% year over year to $71.34 billion and accounted for 74% of total revenues. The figure beat the consensus mark by 3%. Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing the Zacks Consensus Estimate by 3.04%. Search and other revenues accounted for 56.2% of total revenues. YouTube’s advertising revenues improved 13.1% year over year to $9.77 billion, beating the consensus mark by 2.9%.
However, Google Network revenues decreased 1.2% year over year to $7.35 billion but beat the consensus mark by 2.88%.
Google subscriptions, platforms and devices revenues, formerly known as Google Other revenues, were $11.2 billion in the second quarter, up 20.3% year over year. The figure beat the consensus mark by 4.72%.
Other Bets’ revenues were $373 million, up 2.2% year over year, and accounted for 0.4% of the second-quarter revenues. The figure missed the consensus mark by 12.16%.
GOOGL’s Operating Margin Expands Y/Y
Costs and operating expenses were $65.16 billion, up 13.7% year over year. As a percentage of revenues, the figure declined 10 basis points (bps) on a year-over-year basis to 67.6%.
The operating margin was 32.4%, which expanded 10 bps year over year.
Segment-wise, Google Services’ operating margin of 40.1% contracted 10 bps year over year. Google Cloud’s operating income was $2.83 billion compared with $1.17 billion reported in the year-ago quarter.
Other Bets reported a loss of $1.25 billion compared with a loss of $1.13 billion in the year-ago quarter.
Alphabet’s Balance Sheet Remains Strong
As of June 30, 2025, cash, cash equivalents, and marketable securities were $95.15 billion, down from $95.33 billion as of March 31, 2025.
Long-term debt was $23.61 billion as of June 30, 2025, compared with $10.89 billion as of March 31, 2025. In May 2025, GOOGL issued fixed-rate senior unsecured notes with net proceeds of $12.5 billion.
Alphabet generated $27.75 billion of cash from operations in the second quarter of 2025 compared with $36.15 billion in the first quarter of 2025. GOOGL spent $22.45 billion on capital expenditure, generating a free cash flow of $5.3 billion in the reported quarter.
Alphabet Raises Capital Expenditure Guidance
For 2025, Alphabet now expects to spend $85 billion on capital expenditures.
Meta Platforms shares have returned 22% year to date. The social-networking giant is scheduled to release second-quarter 2025 results on July 30. Meta Platforms sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lam Research shares have surged 34.4% year to date. This wafer fabrication equipment and services provider is scheduled to release fourth-quarter fiscal 2025 results on July 30. Lam Research currently has a Zacks Rank #2 (Buy).
Enovix shares have surged 33.9% year to date. The silicon-anode battery provider is set to report its second-quarter 2025 results on July 31. Enovix has a Zacks Rank #2.
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GOOGL Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise
Key Takeaways
Alphabet’s (GOOGL - Free Report) second-quarter 2025 earnings of $2.31 per share beat the Zacks Consensus Estimate by 7.44% and grew 22.2% year over year. GOOGL shares were up roughly 3.3% in pre-market trading on Thursday, reflecting strong results.
Revenues of $96.43 billion increased 13.8% year over year (13% at constant currency). Net revenues, excluding total traffic acquisition costs (“TAC”) (the portion of revenues shared with Google’s partners and the amount paid to distribution partners and others who direct traffic to Google’s website), were $81.72 billion, which surpassed the consensus mark by 2.2%. The figure rose 14.5% year over year. TAC of $14.71 billion rose 9.8% year over year.
Google Cloud revenues surged 31.7% year over year to $13.62 billion and accounted for 14.1% of the quarter’s total revenues. The figure beat the Zacks Consensus Estimate by 4.24%.
GOOGL’s Services Ride on Search & YouTube
Google Services revenues increased 11.7% year over year to $82.54 billion and accounted for 85.6% of total revenues. The figure beat the Zacks Consensus Estimate by 3.28%.
Alphabet Inc. Price, Consensus and EPS Surprise
Alphabet Inc. price-consensus-eps-surprise-chart | Alphabet Inc. Quote
Google advertising revenues rose 10.4% year over year to $71.34 billion and accounted for 74% of total revenues. The figure beat the consensus mark by 3%. Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing the Zacks Consensus Estimate by 3.04%. Search and other revenues accounted for 56.2% of total revenues. YouTube’s advertising revenues improved 13.1% year over year to $9.77 billion, beating the consensus mark by 2.9%.
However, Google Network revenues decreased 1.2% year over year to $7.35 billion but beat the consensus mark by 2.88%.
Google subscriptions, platforms and devices revenues, formerly known as Google Other revenues, were $11.2 billion in the second quarter, up 20.3% year over year. The figure beat the consensus mark by 4.72%.
Other Bets’ revenues were $373 million, up 2.2% year over year, and accounted for 0.4% of the second-quarter revenues. The figure missed the consensus mark by 12.16%.
GOOGL’s Operating Margin Expands Y/Y
Costs and operating expenses were $65.16 billion, up 13.7% year over year. As a percentage of revenues, the figure declined 10 basis points (bps) on a year-over-year basis to 67.6%.
The operating margin was 32.4%, which expanded 10 bps year over year.
Segment-wise, Google Services’ operating margin of 40.1% contracted 10 bps year over year. Google Cloud’s operating income was $2.83 billion compared with $1.17 billion reported in the year-ago quarter.
Other Bets reported a loss of $1.25 billion compared with a loss of $1.13 billion in the year-ago quarter.
Alphabet’s Balance Sheet Remains Strong
As of June 30, 2025, cash, cash equivalents, and marketable securities were $95.15 billion, down from $95.33 billion as of March 31, 2025.
Long-term debt was $23.61 billion as of June 30, 2025, compared with $10.89 billion as of March 31, 2025. In May 2025, GOOGL issued fixed-rate senior unsecured notes with net proceeds of $12.5 billion.
Alphabet generated $27.75 billion of cash from operations in the second quarter of 2025 compared with $36.15 billion in the first quarter of 2025. GOOGL spent $22.45 billion on capital expenditure, generating a free cash flow of $5.3 billion in the reported quarter.
Alphabet Raises Capital Expenditure Guidance
For 2025, Alphabet now expects to spend $85 billion on capital expenditures.
Zacks Rank & Stocks to Consider
Alphabet currently has a Zacks Rank #3 (Hold).
Lam Research (LRCX - Free Report) , Enovix (ENVX - Free Report) and Meta Platforms (META - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Meta Platforms shares have returned 22% year to date. The social-networking giant is scheduled to release second-quarter 2025 results on July 30. Meta Platforms sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lam Research shares have surged 34.4% year to date. This wafer fabrication equipment and services provider is scheduled to release fourth-quarter fiscal 2025 results on July 30. Lam Research currently has a Zacks Rank #2 (Buy).
Enovix shares have surged 33.9% year to date. The silicon-anode battery provider is set to report its second-quarter 2025 results on July 31. Enovix has a Zacks Rank #2.