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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Sushree MohantySun, Jul 27, 2025, 2:00 PM 5 min readAlphabet Inc_ and Google logos by IgorGolovinov via ShutterstockAlphabet (GOOGL), Google’s parent company, recently reported one of its most impressive quarterly results to date. From soaring Search and YouTube revenues to explosive growth in Cloud and creative advertising tools, Alphabet is using artificial intelligence (AI) not only to innovate, but also to monetize.Valued at $2.3 trillion, GOOGL stock has gained 1.8% year-to-date, but there is long-term upside in the coming years. With momentum building across all core segments (Search, YouTube, Google Cloud, and Ads), GOOGL stock could be the next big winner in the market’s AI race.Warren Buffett Warns Inflation Turns Business Into ‘The Upside-Down World of Alice in Wonderland’ But Weeds Out ‘Bad Businesses’Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued?Billionaire Paul Singer Is Doubling Down on This Data Center Stock. Should You?Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.www.barchart.comAI is driving meaningful engagement across the company’s ecosystem. In the second quarter, total revenue reached $96.4 billion, up 14% year-over-year. Google Services contributed $83 billion, with Search and other revenues rising 12% to $54.2 billion, driven by retail and financial services. Net income climbed 19% to $28.2 billion, and EPS increased 22% to $2.31.Search, Google’s flagship product and the company’s largest moneymaker, is undergoing a significant transformation thanks to AI. During the earnings call, CEO Sundar Pichai stated that AI has evolved from a feature enhancement to a structural growth driver. Management specified that Gemini 2.5 now supports more than 2 billion monthly users in 200 countries and 40 languages. These AI developments have not only improved search quality, but also increased user engagement by increasing the number of follow-up queries, particularly among younger users. The introduction of AI Mode in Search marked a significant improvement, with over 100 million monthly active users in just two markets for now, the U.S. and India.Google Cloud remained a pillar of Alphabet’s AI strategy, with an annual revenue run rate of $50 billion. It also holds a third position in the global computing market, trailing Amazon’s (AMZN) AWS and Microsoft’s (MSFT) Azure. In the second quarter, Google Cloud generated $13.6 billion in revenue (+32% YoY) and nearly doubled its operating margin from 11.3% to 20.7%. The cloud backlog (revenue yet to be recognized) increased to $106 billion, up 38% YoY, indicating sustained demand. 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