Alphabet, the parent company of Google, announced a double-digit growth in revenues and profits in the second quarter, with quarterly revenues rising 14% year-on-year to $96.4 billion, and operating profit up 14%, to $31.3 billion.
Google’s net profit also increased by 19% over the same period to $28.2 billion with the company set to increase capital investment to support further growth.
Sectoral Growth
Google Cloud showed the strongest growth, with revenues up 32% to $13.6 billion amid a steady increase in customers and backlog. Google Search grew by 12% to $54.2 billion, and revenues from YouTube ads increased 13% to $9.8 billion.
Google’s subscription and device revenue exceeded $11.2 billion representing a 20% increase year-over-year.
Google’s new AI features in search were also performing well with overall search queries growing year-on-year with around 10% boost to queries that include an AI overview. In addition, the Gemini app attracted over 450 million active monthly users and saw a 50% quarterly increase in daily requests to the AI assistant compared to Q1.
Google now expects annual capital expenditure to reach $85 billion, up from a target of $75 billion at the start of the year and the $52 billion spent in 2024 following massive requests for its Cloud and AI services.
