Alphabet (GOOGL) Sees 14% YoY Growth in Consolidated Revenues in Q2 2025

Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 23, the company reported its Q2 2025 results, wherein, its consolidated revenues went up by 14%, or 13% in constant currency, YoY to $96.4 billion. This reflects strong momentum throughout the business. Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each saw double-digit growth in Q2 2025. Alphabet Inc. (NASDAQ:GOOGL) highlighted that AI continues to positively impact every part of the business, fueling strong momentum. Search saw double-digit revenue growth, and its new features, like AI Overviews and AI Mode, continue to perform well.

Alphabet (GOOGL) Sees 14% YoY Growth in Consolidated Revenues in Q2 2025

A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.

Cloud saw another great quarter of healthy growth in revenues, backlog, and profitability. Its annual revenue run rate is now over $50 billion, and it is witnessing strong demand for its comprehensive AI product portfolio. Alphabet Inc. (NASDAQ:GOOGL) sees healthy customer demand in Google Cloud, thanks to the product differentiation and its comprehensive AI product portfolio. The company has integrated AI agents deeply into each of its Cloud products. Alphabet Inc. (NASDAQ:GOOGL) highlighted that Google Cloud backlog rose 18% sequentially in Q2 2025 and 38% YoY, reaching $106 billion at quarter end. This was aided by robust demand for its products and services from both new and existing customers.

Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:

“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. The U.S.-headquartered technology company’s stock price rose relatively steadily throughout the period after it delivered solid first-quarter 2025 earnings and mega-cap tech stocks trended higher. Despite concerns around incremental competition, Google Search revenue grew low-double digits and was slightly ahead of consensus forecasts. Operating income was also ahead of expectations, with Alphabet improving margins even as the company continues to make substantial investments in AI. We believe the potential payoff from these investments across each of Alphabet’s business units remains underappreciated. After adjusting for the value of Google Cloud and Alphabet’s Other Bets, we believe the Search, YouTube and Android businesses are being valued at a low-teens price-to-earnings (P/E) multiple. We still see this as an attractive valuation.”

While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.