Alphabet released its financial report for the second quarter of 2025, showing steady gains in its advertising business, cloud services, and AI-related product usage. Google's advertising revenue grew 10.4 percent compared to the same period last year, reaching 71.3 billion dollars. YouTube, which is part of Google’s advertising business, brought in nearly 9.8 billion, up from 8.7 billion the previous year. Most of this growth came from YouTube’s expanding viewership on TVs, which has now overtaken mobile in some regions. Recent data suggests YouTube had the largest share of TV screen time for three straight months. The growth in this area appears to be linked to a broader shift in how people are consuming video, and Alphabet’s report notes that competing streaming platforms have started adjusting their ad strategies in response.
Beyond video and search advertising, Alphabet highlighted usage increases across its AI products. Google Search’s AI Overviews, which offer quick summaries for certain search results, are now available in 200 regions and are being used by two billion people each month. In May, that number was 1.5 billion. AI Mode, a tool that provides responses in a conversational format within Search, has reached one hundred million monthly users in the United States and India. Daily activity on Gemini, Google’s AI assistant app, rose by more than fifty percent since the first quarter, and it now has around 450 million active users. Google said these features are prompting people to make more searches overall, especially younger users who appear more comfortable interacting with AI-driven systems.
In its video AI efforts, the company pointed to the growing role of its Veo model. Since May, users have generated more than seventy million videos using Veo 3. Developers working with Google’s Gemini models now number over nine million, and within Workspace, the company’s video creation feature has gained nearly one million monthly users. Google Meet, the video conferencing product, also saw over fifty million people using AI-generated meeting notes during the quarter.
Token processing across all Google AI products and APIs hit 980 trillion per month, which is double the number it reported just two months earlier at its developer conference. That spike in activity appears to have been one of the reasons behind Alphabet's decision to increase its capital spending in 2025, which it has now set at eighty-five billion dollars. The report also confirmed that Google's cloud division saw an increase in revenue and profit, with its annual revenue run rate climbing above the fifty billion dollar mark.
YouTube Shorts also received attention on the earnings call. The product now gets more than two hundred million daily views, and in several countries, revenue per watch hour has matched what the core YouTube platform delivers. The company is also preparing to broadcast an NFL game globally this September without charging viewers. The game will be streamed live and marks a new step in YouTube’s long-term push into live sports.
Alphabet’s overall revenue for the quarter came in at 96.4 billion dollars, which represents a 14 percent rise from the same quarter in 2024. Net income increased by 19 percent, reaching 28.2 billion. Operating income grew by the same percentage as total revenue, and services revenue reached 82.5 billion. Compared with the first quarter of 2025, advertising and total revenue both rose by 6.6 percent, and profits were up by 2.17 percent.
The report shows Alphabet remains focused on expanding the scale of its AI infrastructure and growing adoption across its products, especially where it directly influences user engagement and search volume. AI is now integrated into nearly every part of its consumer-facing services. The numbers also reflect how Alphabet’s long-term investments in AI systems and cloud infrastructure are beginning to show measurable results in usage and revenue across multiple areas of its business.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
Read next: AI Use Up 75%, Daily Usage at 43%, Yet 40% Say Complex Queries Fail
Beyond video and search advertising, Alphabet highlighted usage increases across its AI products. Google Search’s AI Overviews, which offer quick summaries for certain search results, are now available in 200 regions and are being used by two billion people each month. In May, that number was 1.5 billion. AI Mode, a tool that provides responses in a conversational format within Search, has reached one hundred million monthly users in the United States and India. Daily activity on Gemini, Google’s AI assistant app, rose by more than fifty percent since the first quarter, and it now has around 450 million active users. Google said these features are prompting people to make more searches overall, especially younger users who appear more comfortable interacting with AI-driven systems.
In its video AI efforts, the company pointed to the growing role of its Veo model. Since May, users have generated more than seventy million videos using Veo 3. Developers working with Google’s Gemini models now number over nine million, and within Workspace, the company’s video creation feature has gained nearly one million monthly users. Google Meet, the video conferencing product, also saw over fifty million people using AI-generated meeting notes during the quarter.
Token processing across all Google AI products and APIs hit 980 trillion per month, which is double the number it reported just two months earlier at its developer conference. That spike in activity appears to have been one of the reasons behind Alphabet's decision to increase its capital spending in 2025, which it has now set at eighty-five billion dollars. The report also confirmed that Google's cloud division saw an increase in revenue and profit, with its annual revenue run rate climbing above the fifty billion dollar mark.
YouTube Shorts also received attention on the earnings call. The product now gets more than two hundred million daily views, and in several countries, revenue per watch hour has matched what the core YouTube platform delivers. The company is also preparing to broadcast an NFL game globally this September without charging viewers. The game will be streamed live and marks a new step in YouTube’s long-term push into live sports.
Alphabet’s overall revenue for the quarter came in at 96.4 billion dollars, which represents a 14 percent rise from the same quarter in 2024. Net income increased by 19 percent, reaching 28.2 billion. Operating income grew by the same percentage as total revenue, and services revenue reached 82.5 billion. Compared with the first quarter of 2025, advertising and total revenue both rose by 6.6 percent, and profits were up by 2.17 percent.
The report shows Alphabet remains focused on expanding the scale of its AI infrastructure and growing adoption across its products, especially where it directly influences user engagement and search volume. AI is now integrated into nearly every part of its consumer-facing services. The numbers also reflect how Alphabet’s long-term investments in AI systems and cloud infrastructure are beginning to show measurable results in usage and revenue across multiple areas of its business.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
Read next: AI Use Up 75%, Daily Usage at 43%, Yet 40% Say Complex Queries Fail
