Google Cloud's second-quarter 2025 revenue reached $13.6 billion, marking a 32% year-over-year increase, largely due to accelerated growth in core and AI products. Operating income rose to $2.83 billion, with an operating margin of 20.7%, up from 11.3% a year prior. The cloud division has exceeded a $50 billion annual run rate, solidifying its status among top hyperscalers. Despite rising capital expenditures for AI, Alphabet emphasizes productivity improvements to counterbalance higher infrastructure expenses.
Google Cloud posted $13.6 billion in Q2 revenue, up 32% year-over-year, according to CFO Anat Ashkenazi, driven by growth in core and AI products at a rate that was much higher than Cloud's overall revenue growth.
Operating income from the cloud division arrived at $2.83 billion (up from $1.17 billion a year earlier), with operating margin climbing to 20.7%, up from 11.3% in the same year-ago period.
AI is positively impacting every part of the business, as described by CEO Sundar Pichai. The company is aggressively pushing into generative AI workloads.
As we ramp our AI investments, we continue to focus on driving improvements in productivity and efficiency to offset growth in technical infrastructure-related expenses, particularly from higher depreciation.
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