Alphabet shares rose 2.5% in early European trading on Thursday after the Google parent company raised its capital spending plans, following a strong beat of Wall Street estimates for quarterly revenue and profit.

Live Updates Live Coverage Updates appear automatically as they are published. Revenue By Segment Heading Into Q2 1:16 pm Cloud returned to high-20s % growth, while Search and YouTube showed strength across both brand and performance formats Segment Revenue YoY Growth Google Search $46.

Alphabet Inc. reported strong second-quarter earnings, exceeding Wall Street's expectations with a 14 percent revenue increase to $96.4 billion. Driven by growth in advertising and cloud businesses, the company is investing heavily in AI infrastructure.

The addition of AI Overviews to Google Search may be one reason why that business continues to show strength. It brought in more than $54.19 billion in revenue during the quarter, representing a good chunk of its overall $71.34 billion in advertising revenue. That was up 10.5% from $64.61 billion in ad sales in the same period last year.

Coming into the Q2 2025 earnings today, Alphabet Inc.'s total revenue expectations of $94 billion for the quarter have remained stable since February.

After months of underperforming their tech peers, Alphabet Inc. shares are finally showing signs of life as investors bet that a strong earnings performance will outweigh concerns about a looming antitrust ruling.

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks on Analysts’ Radar Right Now. On July 21, Wolfe Research analyst Shweta Khajuria reiterated an “Outperform” rating on the stock with a $190.00 price target.

AI is a main theme of second-quarter earnings as Alphabet reports this week. Tesla, Mattel, Hasbro and Coca-Cola also report, as Trump policies remain top of mind.

Alphabet Inc. reported robust second-quarter 2025 financial results, marked by double-digit revenue growth and a sharp increase in capex. The company posted revenue of US$96.43 billion, up 14% year-over-year,

The firm highlighted that better conversion rates for AI-driven search results are resulting in higher cost-per-click (CPC) metrics for the company’s core search business. It also believes that Alphabet is likely to report positive upside to estimates in its second-quarter results. However, positive market reaction may fade after the earnings.

While there are lingering concerns about Google’s search business in the long run, analysts see some positives ahead of upcoming second-quarter results.