Google Share Price: Google parent Alphabet reported better-than-expected second-quarter earnings and revenue, driven by robust advertising sales and record growth in its cloud business. The results suggest the company’s heavy investments in artificial intelligence are boosting its core businesses, although investors remain focused on rising capital expenditure and the pace of AI model development.
Alphabet Q2 Results: Revenue, Profit Beat Expectations
Alphabet reported revenue of $119.8 billion for the April-June quarter, up 24% from $96.43 billion a year earlier and ahead of analysts’ estimate of $116.9 billion.
Net income surged to $112.11 billion, or $9.11 per share, compared with $28.2 billion, or $2.31 per share, in the corresponding period last year.
Advertising and Cloud Power Growth
Google’s advertising business remained the biggest growth driver during the quarter, helped by strong demand around the FIFA World Cup, particularly on YouTube.
Advertising revenue rose to $81.6 billion, exceeding analysts’ expectations of $81.1 billion.
The company also posted its strongest-ever quarter of growth for its cloud computing business, supported by increasing demand for its AI offerings, including chips, models, data, security and agent platforms.
AI Spending Set to Rise Further
Alphabet also announced higher capital expenditure plans as it continues to expand its AI infrastructure.
Chief Financial Officer Anat Ashkenazi said the company now expects to spend between $195 billion and $205 billion in capital expenditure, compared with its earlier guidance of $180 billion to $190 billion.
The increase in spending came even as investors expressed concerns over continued delays to Google’s flagship AI models.
Pichai Defends Google’s AI Strategy
“There are many attributes on which we are still at the frontier. There are areas where we’ve acknowledged we need to improve; coding and agentic coding is an example of that.”
Pichai said Google is continuing to test Gemini 3.5 Pro while simultaneously training Gemini 4.
“We are applying a lot of our compute and effort in that direction” to remain competitive.
“We are both very committed and very confident of being at the frontier for the next generation.”
Alphabet shares have been among the strongest performers in the “Magnificent 7” group this year, gaining more than 9% through the previous close. However, concerns over Gemini delays, high-profile executive departures and regulatory pressures have pulled the stock about 9% lower since the end of April.
