Jul 24, 2025 11:37:00

YouTube's advertising revenue in the second quarter of 2025 is expected to increase 13% year-on-year to approximately 1.43 trillion yen, while Alphabet's overall sales will increase 14% year-on-year to approximately 14 trillion yen

On July 23, 2025 local time, Alphabet, the parent company of Google, announced its financial results for the second quarter (April to June) of 2025. Alphabet's consolidated sales increased 14% year-on-year to $96.43 billion (approximately 14 trillion yen), and Google search, YouTube advertising, and cloud businesses also grew by more than 10% year-on-year.

GOOG Exhibit 99.1 Q2 2025 - 2025q2-alphabet-earnings-release.pdf
(PDF file)

https://abc.xyz/assets/cc/27/3ada14014efbadd7a58472f1f3f4/2025q2-alphabet-earnings-release.pdf

Alphabet Q2 earnings call: CEO's remarks
https://blog.google/inside-google/message-ceo/alphabet-earnings-q2-2025/

Alphabet beats earnings expectations, raises spending forecast
https://www.cnbc.com/2025/07/23/alphabet-google-q2-earnings.html

YouTube sees a rise in ad revenue to reach nearly $10 billion | TechCrunch
https://techcrunch.com/2025/07/23/youtube-sees-a-rise-in-ad-revenue-to-reach-nearly-10-billion/

Alphabet's second-quarter 2025 sales were $96.43 billion, beating analysts' expectations of $94 billion. Operating income increased 14% year-on-year to $31.271 billion, and net income increased 19% year-on-year to $28.196 billion.

Breaking down the revenue, Google Search and Other increased 12% year-on-year to $54.19 billion (approximately 7.91 trillion yen), YouTube advertising increased 13% year-on-year to $9.796 billion (approximately 1.43 trillion yen), and Google Cloud increased 32% year-on-year to $13.62 billion (approximately 1.99 trillion yen).

'Google Search delivered double-digit revenue growth, and new search features continue to perform well,' said Alphabet CEO Sundar Pichai. 'AI Mode has launched in the U.S. and India and is progressing well. AI Overview is now used by more than 2 billion monthly users in more than 200 countries and regions, across 40 languages.'

YouTube also continues to perform well, with YouTube Shorts in particular being viewed an average of 200 billion times per day. In the United States, it has been reported that revenue per viewing hour for YouTube Shorts is on par with that for traditional videos, and in some countries, revenue from short videos is even higher than that of traditional videos.

Alphabet continues to expand its AI strategy, and in February 2025, Pichai

announced that the company would make capital expenditures of approximately $75 billion by the end of the year. However, it has become clear that the company plans to increase its capital expenditures to $85 billion in 2025, driven by the demand for AI.

In addition, the app version of the AI 'Gemini' developed by Google has more than 450 million monthly active users, and the number of daily requests has increased by more than 50% since the first quarter of 2025. Google Meet's AI-based meeting memo function was used by more than 50 million people in June 2025 alone, and the number of monthly active users of ' Google Vids ', a video editing function using Gemini, also exceeded 1 million.

'We delivered strong growth across the board during the quarter. We continue to lead with AI and deliver on our incredible pace. AI is having a positive impact on all areas of our business and we are generating strong momentum. Our search business delivered double-digit revenue growth and we are seeing strong growth from new features like AI Overview and AI Mode. We continue to see strong performance from YouTube and our subscription services,' Pichai said.

In a post on X , Pichai shared a chart showing that Alphabet's revenue is expected to exceed $350 billion in 2024, up $275 billion since 2015.