Google Reports $96.4B Q2 Revenue Driven by AI, Ad Growth

Google reported strong financial results for Q2 2025, with revenue reaching $96.4 billion, a 14% year-over-year increase, and net income of $28.2 billion, up 19%. Advertising revenue, primarily from Google Search, YouTube, and Google Network, totaled $71.3 billion, driven by innovations such as AI Overviews and AI Mode that enhance search experiences and ad targeting. CEO Sundar Pichai emphasized Google's leadership in AI, highlighting Gemini's 450 million monthly active users and AI Overviews' 2 billion users worldwide, while noting robust growth in Google Cloud, which generated $13.6 billion in revenue with a $50 billion annual run-rate. Despite these gains, Google faces growing competition from AI-powered search engines like OpenAI and Anthropic, with AI engines capturing 5.6% of U.S. desktop search traffic recently. To maintain its competitive edge, Google is increasing capital expenditures from $75 billion to $85 billion in 2025, focusing heavily on AI and cloud infrastructure, though some market analysts express caution about near-term profitability impacts. Additionally, the company is navigating antitrust challenges related to its advertising technologies amid changing search behaviors influenced by AI chatbots.