Please wait
Alphabet Announces Second Quarter 2025 Results
MOUNTAIN VIEW, Calif. – July 23, 2025 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended June 30, 2025.
•Consolidated Alphabet revenues in Q2 2025 increased 14%, or 13% in constant currency, year over year to $96.4 billion reflecting robust momentum across the business. Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each delivered double-digit growth in Q2.
•Google Services revenues increased 12% to $82.5 billion, reflecting strong performance across Google Search & other, Google subscriptions, platforms, and devices, and YouTube ads.
•Google Cloud revenues increased 32% to $13.6 billion, led by growth in Google Cloud Platform (GCP) across core GCP products, AI Infrastructure, and Generative AI Solutions.
•Total operating income increased 14% and operating margin was 32.4%. Operating margin benefited from strong revenue growth and continued efficiencies in the expense base, partially offset by a charge related to a settlement in principle of certain legal matters.
•Net income increased 19% and EPS increased 22% to $2.31.

Sundar Pichai, CEO, said: "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. AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well. We continue to see strong performance in YouTube as well as subscriptions offerings. And Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run-rate is now more than $50 billion. With this strong and growing demand for our Cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead.”
Q2 2025 Financial Highlights (unaudited)
The following table summarizes our consolidated financial results for the quarters ended June 30, 2024 and 2025 (in millions, except for per share information and percentages).
Quarter Ended June 30,
20242025
Revenues$84,742 $96,428 
Change in revenues year over year14 %14 %
Change in constant currency revenues year over year(1)
15 %13 %
Operating income$27,425 $31,271 
Operating margin
32 %32 %
Other income (expense), net
$126 $2,662 
Net income$23,619 $28,196 
Diluted EPS$1.89 $2.31 
(1)    Non-GAAP measure. See the section captioned “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” for more details.


Q2 2025 Supplemental Information (in millions, except for number of employees; unaudited)
Revenues, Traffic Acquisition Costs (TAC), and Number of Employees

Quarter Ended June 30,
20242025
Google Search & other$48,509 $54,190 
YouTube ads8,663 9,796 
Google Network7,444 7,354 
Google advertising64,616 71,340 
Google subscriptions, platforms, and devices9,312 11,203 
Google Services total73,928 82,543 
Google Cloud10,347 13,624 
Other Bets365 373 
Hedging gains (losses)102 (112)
Total revenues$84,742 $96,428 
Total TAC$13,387 $14,705 
Number of employees
179,582187,103
Segment Operating Results

Quarter Ended June 30,
20242025
Operating income (loss):
Google Services$29,674 $33,063 
Google Cloud1,172 $2,826 
Other Bets(1,134)$(1,246)
Alphabet-level activities(1)
(2,287)$(3,372)
Total income from operations$27,425 $31,271 
(1)In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $102 million and $(112) million for the three months ended June 30, 2024 and 2025, respectively. Alphabet-level activities include charges related to employee severance and office space charges.
Additional Information Relating to the Quarter Ended June 30, 2025 (unaudited)
Issuance of Senior Unsecured Notes
In May 2025, Alphabet issued fixed-rate senior unsecured notes for net proceeds of $12.5 billion to be used for general corporate purposes.
2

Webcast and Conference Call Information
A live audio webcast of our second quarter 2025 earnings release call will be available on YouTube at https://www.youtube.com/watch?v=BtXRNTgsgpU. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available at http://abc.xyz/investor.
We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor).
We also share Google news and product updates on Google's Keyword blog at https://www.blog.google/ and News From Google page on X at x.com/NewsFromGoogle, and our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest or material to our investors.
Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 and our most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which are on file with the SEC and are available on our investor relations website at http://abc.xyz/investor and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, and may be set forth in other reports and filings we make with the SEC. All information provided in this release and in the attachments is as of July 23, 2025. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: free cash flow; constant currency revenues; and percentage change in constant currency revenues. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign exchange rate movements and hedging activities, which are recognized at the consolidated level. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
For more information on these non-GAAP financial measures, please see the sections captioned “Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow” and “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” included at the end of this release.
Contact
Investor relations
Media
investor-relations@abc.xyzpress@abc.xyz

3

Alphabet Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except par value per share amounts)
As of
December 31, 2024		As of
June 30, 2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents$23,466 $21,036 
Marketable securities72,191 74,112 
Total cash, cash equivalents, and marketable securities95,657 95,148 
Accounts receivable, net52,340 55,048 
Other current assets15,714 16,020 
Total current assets163,711 166,216 
Non-marketable securities37,982 52,574 
Deferred income taxes17,180 19,289 
Property and equipment, net171,036 203,231 
Operating lease assets13,588 14,255 
Goodwill31,885 32,335 
Other non-current assets14,874 14,153 
Total assets$450,256 $502,053 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$7,987 $8,347 
Accrued compensation and benefits15,069 12,168 
Accrued expenses and other current liabilities51,228 52,039 
Accrued revenue share9,802 9,787 
Deferred revenue5,036 4,969 
Total current liabilities89,122 87,310 
Long-term debt10,883 23,607 
Income taxes payable, non-current8,782 10,027 
Operating lease liabilities11,691 11,952 
Other long-term liabilities4,694 6,241 
Total liabilities125,172 139,137 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 100 shares authorized; no shares issued and outstanding0 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 earnings245,084 275,760 
Total stockholders’ equity325,084 362,916 
Total liabilities and stockholders’ equity$450,256 $502,053 
4

Alphabet Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts, unaudited)
Quarter Ended June 30,Year To Date June 30,
2024202520242025
Revenues$84,742 $96,428 $165,281 $186,662 
Costs and expenses:
Cost of revenues35,507 39,039 69,219 75,400 
Research and development11,860 13,808 23,763 27,364 
Sales and marketing6,792 7,101 13,218 13,273 
General and administrative3,158 5,209 6,184 8,748 
Total costs and expenses57,317 65,157 112,384 124,785 
Income from operations27,425 31,271 52,897 61,877 
Other income (expense), net126 2,662 2,969 13,845 
Income before income taxes27,551 33,933 55,866 75,722 
Provision for income taxes3,932 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 calculation12,343 12,122 12,379 12,153 
Number of shares used in diluted earnings per share calculation12,495 12,198 12,511 12,245 

5

Alphabet Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)
Quarter Ended June 30,Year To Date June 30,
2024202520242025
Operating activities
Net income$23,619 $28,196 $47,281 $62,736 
Adjustments:
Depreciation of property and equipment3,708 4,998 7,121 9,485 
Stock-based compensation expense5,865 5,998 11,129 11,514 
Deferred income taxes(3,157)(444)(2,738)(1,596)
Loss (gain) on debt and equity securities, net1,024 (1,451)(757)(11,411)
Other851 560 1,185 1,041 
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net(3,057)(2,839)110 (1,201)
Income taxes, net
(3,900)(9,631)(889)(2,434)
Other assets(532)(1,479)(1,532)(2,767)
Accounts payable1,561 553 (563)(327)
Accrued expenses and other liabilities
(122)3,485 (5,176)(1,560)
Accrued revenue share419 (335)97 (219)
Deferred revenue361 136 220 636 
Net cash provided by operating activities26,640 27,747 55,488 63,897 
Investing activities
Purchases of property and equipment(13,186)(22,446)(25,198)(39,643)
Purchases of marketable securities(22,327)(21,417)(43,011)(39,870)
Maturities and sales of marketable securities33,592 20,585 58,577 40,930 
Purchases of non-marketable securities(993)(1,354)(2,199)(2,312)
Maturities and sales of non-marketable securities292 614 605 873 
Acquisitions, net of cash acquired, and purchases of intangible assets(26)(13)(87)(353)
Other investing activities(133)(513)(32)(363)
Net cash used in investing activities(2,781)(24,544)(11,345)(40,738)
Financing activities
Net payments related to stock-based award activities(3,209)(2,621)(6,138)(5,731)
Repurchases of stock(15,684)(13,638)(31,380)(28,706)
Dividend payments(2,466)(2,543)(2,466)(4,977)
Proceeds from issuance of debt, net of costs2,893 26,846 4,875 31,378 
Repayments of debt(2,423)(13,876)(5,502)(18,397)
Proceeds from sale of interest in consolidated entities, net0 0 8 400 
Net cash used in financing activities(20,889)(5,832)(40,603)(26,033)
Effect of exchange rate changes on cash and cash equivalents(238)401 (363)444 
Net increase (decrease) in cash and cash equivalents2,732 (2,228)3,177 (2,430)
Cash and cash equivalents at beginning of period24,493 23,264 24,048 23,466 
Cash and cash equivalents at end of period$27,225 $21,036 $27,225 $21,036 

6

Segment Results
The following table presents our segment revenues and operating income (loss) (in millions; unaudited):
Quarter Ended June 30,
20242025
Revenues:
Google Services$73,928 $82,543 
Google Cloud10,347 13,624 
Other Bets365 373 
Hedging gains (losses)102 (112)
Total revenues$84,742 $96,428 
Operating income (loss):
Google Services$29,674 $33,063 
Google Cloud1,172 2,826 
Other Bets(1,134)(1,246)
Alphabet-level activities
(2,287)(3,372)
Total income from operations$27,425 $31,271 
We report our segment results as Google Services, Google Cloud, and Other Bets:
•Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases; and devices.
•Google Cloud includes infrastructure and platform services, applications, and other services for enterprise customers. Google Cloud generates revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services.
•Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of healthcare-related services and internet services.
Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include certain AI-focused shared R&D activities, including development costs of our general AI models; corporate initiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements. Charges associated with employee severance and office space reductions are also not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments.

7

Other Income (Expense), Net
The following table presents our other income (expense), net (in millions; unaudited):
Quarter Ended June 30,
20242025
Interest income$1,090 $1,050 
Interest expense(67)(261)
Foreign currency exchange gain (loss), net(173)(69)
Gain (loss) on debt securities, net(310)165 
Gain (loss) on equity securities, net(1)
(714)1,286 
Performance fees128 (83)
Income (loss) and impairment from equity method investments, net32 419 
Other140 155 
Other income (expense), net$126 $2,662 
(1)Includes all gains and losses, unrealized and realized, on equity securities. For Q2 2025, the net effect of the gain on equity securities of $1.3 billion and the performance fees related to certain investments of $83 million increased the provision for income tax, net income, and diluted net income per share by $253 million, $950 million, and $0.08, respectively. Fluctuations in the value of our investments may be affected by market dynamics and other factors and could significantly contribute to the volatility of OI&E in future periods.
Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (in millions; unaudited):
We provide non-GAAP free cash flow for the current quarter and trailing twelve months (“TTM”) because it is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet.
Quarter Ended
TTM
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Q2 2025
Net cash provided by operating activities$30,698 $39,113 $36,150 $27,747 $133,708 
Less: purchases of property and equipment(13,061)(14,276)(17,197)(22,446)(66,980)
Free cash flow
$17,637 $24,837 $18,953 $5,301 $66,728 
Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures.
TTM free cash flow: We define trailing twelve months free cash flow as net cash provided by operating activities less capital expenditures for the most recent twelve consecutive months.


8

Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues (in millions, except percentages; unaudited):
We provide non-GAAP constant currency revenues (“constant currency revenues”) and non-GAAP percentage change in constant currency revenues (“percentage change in constant currency revenues”), because they facilitate the comparison of current results to historic performance by excluding the effect of foreign exchange rate movements (“FX Effect”) as well as hedging activities, which are recognized at the consolidated level, as they are not indicative of our core operating results.
Non-GAAP constant currency revenues is defined as revenues excluding the effect of foreign exchange rate movements and hedging activities and is calculated by translating current period revenues using prior period exchange rates and excluding any hedging effect recognized in the current period. We calculate the percentage change in constant currency revenues by comparing constant currency revenues to the prior year comparable period revenues, excluding any hedging effect recognized in the prior period.
Revenues by Geography
Comparison from the Quarter Ended June 30, 2024 to the Quarter Ended June 30, 2025
Quarter Ended June 30, 2025
% Change from Prior Period
Quarter Ended June 30,Less FX EffectConstant Currency RevenuesAs ReportedLess Hedging EffectLess FX EffectConstant Currency Revenues
20242025
United States$41,196 $46,063 $0 $46,063 12 %0 %12 %
EMEA24,683 28,262 780 27,482 14 %3 %11 %
APAC13,823 16,480 115 16,365 19 %1 %18 %
Other Americas4,938 5,735 (352)6,087 16 %(7)%23 %
Revenues, excluding hedging effect
84,640 96,540 543 95,997 14 %1 %13 %
Hedging gains (losses)102 (112)
Total revenues(1)
$84,742 $96,428 $95,997 14 %0 %1 %13 %
(1)Total constant currency revenues of $96.0 billion for the quarter ended June 30, 2025 increased $11.4 billion compared to $84.6 billion in revenues, excluding hedging effect, for the quarter ended June 30, 2024.
Comparison from the Quarter Ended March 31, 2025 to the Quarter Ended June 30, 2025
Quarter Ended June 30, 2025
% Change from Prior Period
Quarter EndedLess FX EffectConstant Currency RevenuesAs ReportedLess Hedging EffectLess FX EffectConstant Currency Revenues
March 31, 2025June 30, 2025
United States$43,964 $46,063 $0 $46,063 5 %0 %5 %
EMEA25,923 28,262 1,270 26,992 9 %5 %4 %
APAC14,854 16,480 242 16,238 11 %2 %9 %
Other Americas5,233 5,735 109 5,626 10 %2 %8 %
Revenues, excluding hedging effect89,974 96,540 1,621 94,919 7 %2 %5 %
Hedging gains (losses)260 (112)
Total revenues(1)
$90,234 $96,428 $94,919 7 %0 %2 %5 %
(1)Total constant currency revenues of $94.9 billion for the quarter ended June 30, 2025 increased $4.9 billion compared to $90.0 billion in revenues, excluding hedging effect, for the quarter ended March 31, 2025.







9


Total Revenues — Prior Year Comparative Periods
Comparison from the Quarter Ended June 30, 2023 to the Quarter Ended June 30, 2024
Quarter Ended June 30, 2024
Quarter Ended June 30,% Change from Prior Period
 Less FX EffectConstant Currency RevenuesAs ReportedLess Hedging EffectLess FX EffectConstant Currency Revenues
20232024
Revenues excluding hedging effect$74,601 $84,640 $(1,267)$85,907 13 %(2)%15 %
Hedging gains (losses)$3 $102 
Total revenues$74,604 $84,742 $85,907 14 %1 %(2)%15 %

10