Alphabet Inc (NASDAQ:GOOG) shares moved lower afterhours despite the technology giant reporting better-than-expected financial results for the second quarter as it also revealed it is raising its capital expenditures guidance for 2025.
The Google parent company now expects capex of $85 billion from its earlier forecast of $75 billion, which saw Alphabet’s shares pull back about 1.5% post-earnings.
For Q2, Alphabet reported revenue growth of 14% year-over-year at $96.4 billion, above Street estimates of $93.8 billion.
The company noted that it achieved double-digit growth in its Google Search, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud businesses.
Cloud revenue was up 32% to $13.6 billion, above the $13.1 billion consensus estimate, attributed to growth in Google Cloud Platform (GCP) across core GCP products, AI Infrastructure, and Generative AI Solutions.
YouTube advertising revenue was up 13% at $9.8 billion, ahead of estimates of $9.56 billion.
Earnings per share (EPS) were up 22% from the year-ago quarter at $2.31, beating estimates of $2.18.
"We had a standout quarter, with robust growth across the company,” Alphabet CEO Sundar Pichai said.
He added that AI is positively impacting every part of Alphabet’s business. “Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well,” he said.