Google beat earnings expectations across the board — but a surprise $10 billion increase in capex spending is raising fresh concerns about AI costs.

Google is all-in on AI, and based on the company’s latest quarterly earnings, AI has been good for its bottom line. In a press release for Alphabet’s Q2 2025 earnings, CEO Sundar Pichai says that “AI is positively impacting every part of the business” and that features like AI Overviews and AI Mode are “performing well.”

Alphabet's stock was essentially flat on the year heading into Wednesday's report, suggesting Wall Street wasn't sold on the company's AI positioning. But after the latest earnings, Oppenheimer analyst Jason Helfstein thinks investors will come to think of Alphabet as an "AI winner.

That balancing act helped Google parent Alphabet Inc. earn $28.2 billion, or $2.31 per share, during the second quarter, a 19% increase from the same time last year. Revenue climbed 14% from a year ago to $96.4 billion. Both figures easily eclipsed analysts’ projections.

Alphabet beat Q2 expectations with strong ad and cloud revenue, but stayed silent on crypto. Despite backing Web3 infrastructure, Google still holds no Bitcoin or digital assets.

Alphabet's management has indicated that the company is adjusting fine to the rise of artificial-intelligence search results, but some analysts aren't so sure about the long-term picture. Google isn't sitting still as more people bring their search queries to platforms like ChatGPT.

The U.K.'s Competition and Markets Authority is proposing significant changes to the mobile ecosystems of Apple Inc. and Google, a subsidiary of Alphabet Inc., following an investigation into their market dominance.