01—Abstract
Summary
Summary of the 10-Q filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Alphabet Inc. reported robust financial results for the second quarter and first half of 2025, demonstrating continued strong revenue growth across its key segments.
Total revenues reached $96.4 billiona for the quarter, a 14% increase year-over-year, and $186.7 billion for the first half, up 13%. This growth was primarily driven by the Google Services segment, which saw a 12% quarterly increase, and a significant 32% surge in Google Cloud revenue. The company's profitability also improved, with net income rising 19% year-over-year to $28.2 billion for the quarter, and diluted EPS growing to $2.31.
Alphabet continued its strategic capital allocation, repurchasing $13.3 billionb in shares during the quarter and increasing its quarterly dividend by 5%. The company also announced its intent to acquire Wiz, a cloud security platform, for $32.0 billion, signaling a strong commitment to expanding its Google Cloud offerings. Despite ongoing legal and regulatory challenges, particularly in antitrust matters, Alphabet maintains a solid financial position with over $95 billion in cash, cash equivalents, and marketable securities.
02—Key points
Key Highlights
- Total revenues grew 14% year-over-year to $96.4 billion for the second quarter of 2025.
- Google Cloud revenue surged 32% year-over-year to $13.6 billion for the quarter.
- Net income increased by 19% year-over-year to $28.2 billion for the second quarter.
- Diluted EPS rose to $2.31, a 22% increase compared to the prior year's quarter.
- Alphabet announced its intent to acquire cloud security platform Wiz for $32.0 billion.
- Share repurchases amounted to $13.3 billion during the quarter, with $86.3 billion remaining under authorized programs.
- The company increased its quarterly cash dividend by 5% to $0.21 per share.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Alphabet Inc. kept $0.29.
- Revenue$96.43B100.0%
- Cost of revenue−$39.04B40.5%
- Gross profit$57.39B59.5%
- Operating costs−$26.12B27.1%
- Operating income$31.27B32.4%
- Interest, other & tax−$3.08B3.2%
- Net income$28.20B29.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 24, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $96.43B$84.74B | +13.8% |
| Cost of Revenue | $39.04B$35.51B | +9.9% |
| Gross Profit | $57.39B$49.23B | +16.6% |
| R&D Expenses | $13.81B$11.86B | +16.4% |
| Operating Expenses | $65.16B$57.32B | +13.7% |
| Operating Income | $31.27B$27.43B | +14.0% |
| Net Income | $28.20B$23.62B | +19.4% |
| EPS (Basic) | $2.33$1.91 | +22.0% |
| EPS (Diluted) | $2.31$1.89 | +22.2% |
| Shares Outstanding (Basic) | 12.12B12.34B | −1.8% |
| Shares Outstanding (Diluted) | 12.20B12.49B | −2.4% |
05—Questions
Frequently Asked Questions
How did Alphabet's revenue perform in the second quarter of 2025?
Alphabet reported total revenues of $96.4 billion for the second quarter of 2025, representing a 14% increase compared to $84.7 billion in the same period of 2024. This growth was driven by strong performance in both Google Services (up 12%) and a significant 32% increase in Google Cloud revenue.
What is the financial impact of the proposed Wiz acquisition?
Alphabet announced its definitive agreement to acquire Wiz, a cloud security platform, for $32.0 billion in an all-cash transaction. This acquisition is expected to close in 2026 and is designed to bolster Google Cloud's security capabilities. While the financial impact is contingent on closing, it represents a significant strategic investment in the cloud security space.
How is Alphabet managing its capital and returning value to shareholders?
Alphabet demonstrated a commitment to shareholder returns by repurchasing $13.3 billion of its Class A and Class C shares during the second quarter of 2025. Additionally, the company announced a 5% increase in its quarterly cash dividend to $0.21 per share, indicating confidence in its financial performance and a strategy to balance growth investments with shareholder distributions.
What are the key drivers behind the growth in Google Cloud?
Google Cloud's revenue grew by 32% year-over-year in the second quarter of 2025, reaching $13.6 billion. This substantial growth was primarily attributed to the strong performance of Google Cloud Platform, particularly its infrastructure services, as well as continued adoption of Google Workspace and other enterprise services.
06—Continue