Alphabet, the parent company of Google, reported strong second-quarter results, with revenue rising 24% year-on-year as artificial intelligence (AI) continued to drive growth across its cloud, search and digital services businesses.
The company attributed its performance to growing demand for AI-powered products and services, particularly within Google Cloud, where enterprises are increasingly adopting its AI infrastructure, models and enterprise solutions. Google Cloud revenue surged 82% during the quarter, while its cloud backlog expanded to US$514 billion, reflecting sustained customer demand. Alphabet also revealed that nearly 90% of Fortune 100 companies now use Gemini Enterprise to power AI initiatives.
According to the company, its integrated AI portfolio, which includes custom AI chips, large language models, cybersecurity, analytics and AI agent platforms, has strengthened Google Cloud’s competitive position. The company said it has more than doubled the pace of acquiring new cloud customers, while existing clients continue to expand their AI deployments. Google Cloud Marketplace transactions also increased more than sevenfold year-on-year, highlighting strong ecosystem growth.
Artificial intelligence also continued to enhance Google’s consumer products. Search and Other revenues increased 17% as AI-powered experiences such as AI Overviews and AI Mode gained wider adoption. Alphabet said AI Mode has surpassed one billion monthly active users globally, contributing to higher search activity while continuing to generate billions of website clicks every week.
The Gemini ecosystem also recorded significant momentum. More than nine million developers now build applications using Gemini AI models each month, while the company’s APIs process approximately 22 billion tokens every minute, up from 16 billion in the previous quarter. The Gemini app has also grown to 950 million monthly active users, with daily active users tripling over the past year.
Beyond cloud and search, YouTube advertising revenue increased 13% as user engagement continued to grow, supported by new AI-powered features such as Ask YouTube. Alphabet said its AI investments are also advancing innovation across cybersecurity, autonomous driving through Waymo, drone delivery services via Wing, and AI-powered drug discovery at Isomorphic Labs, reinforcing its long-term strategy of embedding AI across its entire business portfolio.
