Google posted better than expected revenue, up 14% to $US96.43 billion for the June quarter despite economic headwinds from a tariff war.
Advertising revenue jumped 10.4% to $US71.34 billion. YouTube ads came in at $9.796 billion, up from $US8.663 billion, and search $54.19 billion, up from $48.509 billion.
CEO Sundar Pichai described the quarter as a standout with robust growth across the company.
“We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum,” he said.
“Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well.
“We continue to see strong performance in YouTube as well as subscriptions offerings. And Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run-rate is now more than $50 billion.
“With this strong and growing demand for our Cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead.”
Emarketer principal analyst Yory Wurmser said Google is doing well despite tariff headwinds and rising AI competition in search.
“Google has so far succeeded in preventing traffic losses, at least in commercial queries to ChatGPT and other AI search engines,” Wurmser said.
“It’s also successfully monetising AI Overviews and AI Mode, a good sign for the future since AI Mode and ChatGPT will start transforming high-intent shopping queries, probably in H2.”
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