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YouTube's ad revenue climbs 13% to $9.8 billion in Q2, fueling Google’s growth
Alphabet reports a strong quarter with YouTube ad sales rising to $9.8 billion, as AI-driven products and a resilient ad business lift overall revenue 14% year-over-year. The company posted a 14% year-over-year rise in revenue to $96.43 billion.
Alphabet reported a robust second quarter for 2025, highlighting the company’s momentum as it leans into artificial intelligence and its core advertising business. The company posted a 14% year-over-year rise in revenue to $96.43 billion, while net income climbed 19% to $28.2 billion. Operating income grew 14% to $31.27 billion, with services revenue up 12% to $82.5 billion.
Google’s advertising revenue rose to $71.3 billion from $64.6 billion a year ago, marking a 10.4% annual increase. YouTube ad revenue also beat expectations, climbing 13% year-over-year to $9.8 billion.
Compared to the previous quarter, ad revenue was up 6.6%, with overall revenue showing the same sequential increase, while profit rose 2.17%.
Sundar Pichai, Google’s 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 subscription 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.”
SUMMARY: Alphabet Inc. 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.
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