Google Crushes Q2 Expectations With Explosive AI and Cloud Growth, But Leaves a Major Question Unanswered

Google Beats Q2 Expectations With Strong Cloud and Ad Growth But Stays Cold on Bitcoin

Alphabet has delivered a strong financial performance in the second quarter of 2025, comfortably beating Wall Street expectations.

The parent company of Google reported revenue of $96.4 billion, up 14% from a year ago—or 13% in constant currency—showing strength across advertising, cloud, and subscription services.

Net income rose 19%, with earnings per share (EPS) jumping to $2.31, a 22% increase.

Google’s core ad business remains a pillar of growth, with advertising revenue hitting $71.3 billion—matching last year’s total but still ahead of the $69.6 billion expected by analysts.

Search revenue alone reached $54.1 billion, beating projections of $52.7 billion.

YouTube ads also delivered, bringing in $9.8 billion, just above the $9.5 billion target.

$GOOG Alphabet Q2 FY25:

• Revenue +14% Y/Y to $96.B ($2.5B beat).
• Operating margin 32% (flat Y/Y).
• EPS $2.31 ($0.12 beat).

☁️ Google Cloud:
• Revenue +32% Y/Y to $13.6B.
• Operating margin 21% (+9pp Y/Y).

▶️ YouTube ads +13% to $9.8B. pic.twitter.com/I4IKWBAV40
— App Economy Insights (@EconomyApp) July 23, 2025
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Cloud Push Gains Momentum While Capex Soars

Google Cloud continued its winning streak with revenue surging 32% year-over-year to $13.6 billion—its sixth consecutive profitable quarter.

The segment now boasts an annualised revenue run-rate of over $50 billion, making it a key contributor to Alphabet’s future strategy.

CEO Sundar Pichai highlighted the impact of AI on the company’s performance:

“AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well.”

However, that momentum comes with mounting investment.

Alphabet confirmed it now expects to spend $85 billion in capital expenditures this year, up from the previously projected $75 billion.

Much of this is earmarked for its expanding AI infrastructure—massive data centres powered by Google’s in-house chips and Nvidia’s high-performance processors.

Still No Bitcoin on the Books

Despite its accelerating involvement in blockchain infrastructure through Google Cloud, Alphabet continues to steer clear of cryptocurrency holdings.

There was no mention of Bitcoin or digital assets in its Q2 earnings call or 10-Q filing—marking a sharp contrast with tech peers like Tesla and MicroStrategy, both of which hold Bitcoin on their balance sheets.

This crypto-agnostic stance is increasingly rare.

Even Meta has dabbled in NFTs and stablecoin pilots, and Amazon is reportedly exploring crypto payments.

But Alphabet appears content focusing on developer tools and cloud services that support the Web3 ecosystem, rather than owning tokens themselves.

In the past year, Google Cloud has built integrations for blockchain analytics, validator services, and node hosting.

It has partnered with prominent projects including Solana, Polygon, and LayerZero, helping power decentralised applications behind the scenes.

Yet, the company has shown no signs of shifting its treasury strategy to include crypto.

Antitrust Ruling Could Reshape Google’s Core Search Business

Alphabet’s results come amid a looming antitrust threat.

A U.S. federal judge has found the company liable for violating competition laws in online search.

Remedies—expected as soon as next month—could significantly impact Google’s operations.

Among the possible outcomes is a ban on exclusivity deals like the one with Apple that makes Google the default search engine on iPhones.

Even more drastically, the court could order Google to divest its Chrome browser, a move that would strike at the heart of its search dominance.

Big Cash, No Crypto — Is That Playing It Too Safe?

Alphabet closed the quarter with a staggering $133 billion in cash and marketable securities.

It has more than enough resources to experiment with digital assets without endangering its balance sheet.

Yet, for now, investors looking for crypto exposure won’t find it here.

While blockchain adoption in enterprise infrastructure is accelerating—and Bitcoin is trading above $118,000—Alphabet’s decision to remain crypto-neutral may soon face more scrutiny.

For some, its conservative posture reflects discipline; for others, it looks like hesitation.

What’s Alphabet Waiting For?

Alphabet’s crypto-agnostic stance might be its shield today—but could become a blind spot tomorrow.

With decentralised technologies gaining traction, holding digital assets isn’t just a hedge—it could be a strategic necessity.

If the company is already laying down the infrastructure for Web3, why not step into the ecosystem fully?

Betting on innovation while refusing to touch the assets driving it may protect Alphabet from short-term volatility—but risks disconnecting it from long-term relevance.