A month has gone by since the last earnings report for Alphabet (GOOGL). Shares have added about 3.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Alphabet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Alphabet’s second-quarter 2025 earnings of $2.31 per share beat the Zacks Consensus Estimate by 7.44% and grew 22.2% year over year.
Revenues of $96.43 billion increased 13.8% year over year (13% at constant currency). Net revenues, excluding total traffic acquisition costs (“TAC”) (the portion of revenues shared with Google’s partners and the amount paid to distribution partners and others who direct traffic to Google’s website), were $81.72 billion, which surpassed the consensus mark by 2.2%. The figure rose 14.5% year over year. TAC of $14.71 billion rose 9.8% year over year.
Google Cloud revenues surged 31.7% year over year to $13.62 billion and accounted for 14.1% of the quarter’s total revenues. The figure beat the Zacks Consensus Estimate by 4.24%.
Google Services revenues increased 11.7% year over year to $82.54 billion and accounted for 85.6% of total revenues. The figure beat the Zacks Consensus Estimate by 3.28%.
Google advertising revenues rose 10.4% year over year to $71.34 billion and accounted for 74% of total revenues. The figure beat the consensus mark by 3%. Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing the Zacks Consensus Estimate by 3.04%. Search and other revenues accounted for 56.2% of total revenues. YouTube’s advertising revenues improved 13.1% year over year to $9.77 billion, beating the consensus mark by 2.9%.
However, Google Network revenues decreased 1.2% year over year to $7.35 billion but beat the consensus mark by 2.88%.
Google subscriptions, platforms and devices revenues, formerly known as Google Other revenues, were $11.2 billion in the second quarter, up 20.3% year over year. The figure beat the consensus mark by 4.72%.
Other Bets’ revenues were $373 million, up 2.2% year over year, and accounted for 0.4% of the second-quarter revenues. The figure missed the consensus mark by 12.16%.
