Alphabet tops Q2 estimates, hikes 2025 capex to $85 billion

Investing.com -- Google-parent Alphabet (NASDAQ:GOOGL) on Wednesday reported second-quarter results ahead of Wall Street estimates. The company also raised its 2025 capital spending outlook.Shares rose more than 1% in extended trading after initially falling by more than 2%.

The Google parent posted earnings per share of $2.31, above analysts’ expectations of $2.17.

Revenue for the quarter rose to $96.43 billion, compared with a consensus estimate of $93.9 billion.

The company said it now expects capital expenditures to reach about $85 billion in 2025, up from a prior forecast of $75 billion, as it ramps up investment in artificial intelligence and cloud infrastructure. It is ahead of the analyst estimate of $73.31 billion. Capex hike also represents a 13.3% jump from last year.

CEO Sundar Pichai said the quarter saw “robust growth across the company,” citing momentum in search, YouTube, and the cloud business, which now has an annual revenue run-rate exceeding $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,” Pichai said in the statement.

During the earnings call, Pichai highlighted the use of AI in search. "AI Mode has launched in the U.S. and India, and is going well, while AI Overviews now has over 2 billion monthly users across more than 200 countries and territories and 40 languages," he said.  He added that AI Overviews are now driving over 10% more queries globally for the types of queries that show them, and this growth continues to increase over time.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

He added that Waymo continues to scale and has now autonomously driven over 100 million miles on public roads. The service is testing across more than 10 cities this year, including New York and Philadelphia.

(Frank DeMatteo contributed)

GOOGL: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if GOOGL is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

Unlock ProPicks AI now