TL;DR
Google’s parent company Alphabet (GOOGL) posted better-than-expected Q2 2025 earnings, largely driven by explosive growth in AI-powered search and cloud services. The market responded with a ~6% stock price jump. Here’s the breakdown.
💰 Google Q2 2025 Highlights
| Metric | Result | Expectation |
|---|---|---|
| Revenue | $93.1B | $91.8B |
| EPS | $1.91 | $1.84 |
| YouTube Ads | $9.9B | $9.5B |
| Google Cloud | $11.6B | $11.2B |
Stock reacted with a 6.2% surge in after-hours trading.
🤖 AI Is the New Search Engine
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Google’s Search Generative Experience (SGE) is now live in 130+ countries
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SGE queries accounted for 19% of total U.S. search volume in July
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CEO Sundar Pichai said:
“Gemini AI and SGE are redefining search, not just complementing it.”
Alphabet is aggressively integrating AI summaries, context answers, and real-time results into core search.
☁️ Google Cloud + AI = Power Combo
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Cloud revenue beat expectations: $11.6B
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New enterprise tools using Gemini 2.5 and Gemini Code Assist are driving major adoption
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Competing directly with Microsoft’s Azure + Copilot stack
“Gemini is driving 42% of enterprise AI queries across our platform,” said Thomas Kurian (Google Cloud CEO)
📈 Why the Market Loves It
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AI = Future of Search + Revenue
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Investors believe Google has the scale + data + infra to dominate
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Multiple brokerages raised price targets:
| Analyst | New Target |
|---|---|
| Goldman Sachs | $205 |
| JPMorgan | $215 |
| Morgan Stanley | $222 |
GOOGL currently trades near $189, giving room for further upside.
🔮 What’s Next?
Watch for:
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Expansion of SGE ad monetization
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Gemini 3.0 release (Q4 expected)
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Regulatory risks around AI content bias in Europe