A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our investor relations website located at abc.xyz/investor. Q2 was a standout quarter for us, with robust growth across the company. We continue to see strong performance in YouTube as well as subscriptions, reflecting great momentum across these high-growth businesses. In the U.S., Shorts now earn as much revenue per watch hour as traditional in-stream on YouTube.
Cloud had a great quarter of strong growth in revenues, backlog, and profitability. We also offer the industry's widest range of TPUs and GPUs, along with storage and software built on top. Our AI infrastructure investments are crucial to meeting the growth in demand from cloud customers. Our 2.5 models have been a catalyst for growth, and 9 million developers have now built with Gemini.
Since then, we have doubled that number, now processing over 980 trillion monthly tokens, a remarkable increase. The Gemini app now has more than 450 million monthly active users, and we continue to see strong growth in engagement, with daily requests growing over 50% from Q1. We are really pleased with the growth in subscriptions, which caught a boost from our Google AI Pro and Ultra plans. We also saw strong growth in the use of multimodal search, particularly the combination of Lens and Circle to Search together with AI Overviews.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year CapEx | FY2025 | ~$85 billion |
| CapEx direction | FY2026 | further increase expected (details on a future call) |
| Metric | YoY | Note |
|---|---|---|
| Consolidated revenue | +14% (13% cc) | Double-digit growth across Search, YouTube ads, subscriptions, and Cloud. |
| Google Search and other revenue | +12% | Growth across all verticals, largest contributions from retail and financial services. |
| YouTube advertising revenue | +13% | Driven by direct response advertising, followed by brand. |
| Network advertising revenue | -1% | Continued year-on-year decline in network. |
| Subscriptions, platforms and devices revenue | +20% | YouTube subscription offerings and Google One, with paid subscription growth the biggest driver. |
| Google Cloud revenue | +32% | GCP core and AI products grew faster than Cloud overall; Workspace grew on higher revenue per seat and seats. |
| Google Cloud operating income | to $2.8 billion (margin 11.3%->20.7%) | Strong revenue performance and expense efficiencies, partly offset by higher technical infrastructure and depreciation costs. |
| Google Services operating income | +11% | Margin flat at 40.1% as revenue growth and efficiencies were offset by the legal charge. |
| Alphabet operating income | +14% | Operating margin 32.4%; revenue growth and efficiencies offset by legal charge and higher depreciation. |
| Net income | +19% | Strong revenue growth flowed through to $28.2 billion. |
| Earnings per share | +22% | Net income growth plus lower share count from buybacks; EPS $2.31. |
| Other Bets revenue | $373 million (operating loss $1.2 billion) | Continued investment, with more resources allocated to Waymo. |
| Depreciation expense | +35% | Prior CapEx build-out translating to higher depreciation; $5 billion in the quarter. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Monthly tokens processed across surfaces | 480 trillion (I/O, May) | over 980 trillion | — |
| Full-year 2025 CapEx outlook | ~$75 billion | ~$85 billion | — |
| Google Cloud annual revenue run rate | prior period below $50 billion | more than $50 billion | — |
| Cloud backlog | prior quarter (grew 18% sequentially into Q2) | $106 billion, +38% YoY | — |
| AI Overviews monthly users | growing toward 2 billion | over 2 billion across 200+ countries | — |