On July 24, Google parent company Alphabet (NASDAQ: GOOG, GOOGL) today released its second quarter financial report for fiscal year 2025 as of June 30. The financial report shows that Alphabet’s second-quarter revenue was US$96.428 billion, an increase of 14% from US$84.742 billion in the same period last year, and a year-on-year increase of 13% at fixed exchange rates; net profit was US$28.196 billion, an increase of 19% from US$23.619 billion in the same period last year.
Alphabet raised 2025 capital expenditures to $85 billion, $10 billion higher than its previous forecast of $75 billion.
Stock price performance:
Alphabet's second-quarter revenue and earnings per share both exceeded analysts' expectations, and its stock price rose nearly 2% in after-hours trading.
Alphabet shares rose 1.99% after hours
Alphabet Class A shares (GOOGL) opened Wednesday at $191.48 on the Nasdaq exchange. As of Wednesday's close, Alphabet's stock price fell $1.11 to close at $190.23, a decrease of 0.58%. As of press time, Alphabet's stock price rose $3.79 to $194.02 in after-hours trading, an increase of 1.99%. In the past 52 weeks, Alphabet's stock price has been as high as $207.05 and as low as $140.53.
Second quarter results highlights:
——Revenue was US$96.428 billion, an increase of 14% from US$84.742 billion in the same period last year, and a year-on-year increase of 13% at constant exchange rates;
·The total revenue of Google’s advertising business was US$71.340 billion, an increase of 10% from US$64.616 billion in the same period last year; of which, Google search and other revenue was US$54.190 billion, an increase of US$48.509 billion from the same period last year. An increase of 12%; YouTube advertising revenue was US$9.796 billion, an increase of 13% from US$8.663 billion in the same period last year; Google advertising network revenue was US$7.354 billion, a decrease of 1% from US$7.444 billion in the same period last year;
Google Cloud business revenue was US$13.624 billion, an increase of 32% from US$10.347 billion in the same period last year;
·Other innovative business (Other Bets) revenue was US$373 million, an increase of 2% from US$365 million in the same period last year;
——Total traffic acquisition cost (TAC) was US$14.705 billion, an increase of 10% from US$13.387 billion in the same period last year;
——Operating profit was US$31.271 billion, an increase of 14% from US$27.425 billion in the same period last year; operating profit margin was 32%, which was the same as 32% in the same period last year;
——Net profit was US$28.196 billion, an increase of 19% from US$23.619 billion in the same period last year;
——Diluted earnings per share were US$2.31, an increase of 22% from US$1.89 in the same period last year;
——Capital expenditures in 2025 are expected to be US$85 billion, US$10 billion higher than the previous forecast of US$75 billion.
Executive comments:
Alphabet CEO Sundar Pichai "We had an outstanding quarter, with strong growth across all of the company's businesses," said Pichai. "We remain at the forefront of the AI frontier and continue to launch new products at an incredible pace. AI is actively impacting every business unit of the company, driving strong growth momentum. The search business achieved double-digit revenue growth, and new features such as AI Overview and AI Mode performed well. YouTube and subscription services continued to perform strongly. The cloud business achieved strong growth in revenue, order backlog and profitability, with annualized revenue now exceeding $50 billion.
"With strong and growing demand for our cloud products and services, we are increasing our 2025 capital expenditures to approximately $85 billion and are very excited about the opportunities ahead."