Alphabet reported second-quarter results on Wednesday that beat on revenue and earnings, but the company said it would raise its capital investments by $10 billion in 2025. Shares of the company were up as much as 3% in after-hours trading. The company’s overall revenue grew 14% year over year, higher than the 10.9% Wall Street expected.

Google crushed earnings expectations — but investor reactions were mixed as the CEO highlighted surging AI usage and a $10 billion capex spike.

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 said that “AI is positively impacting every part of the business” and that features like AI Overviews and AI Mode are “performing well.”

Google is weaving AI deeper into shopping with virtual try-ons, personalized price alerts, and shoppable inspiration

Today, Google announced a new AI shopping feature that can suggest outfits and home decor ideas, plus connect users with products that look similar to its recommendations. The feature will be available to U.S. users within the Google AI Mode search experience this fall.

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.

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