Anthropic and SpaceX gains drive Alphabet to record $112.1B quarterly profit

Alphabet posted $112.1 billion in net income for the second quarter, a record for the search giant and one of the largest quarterly profits ever reported by a company. Net income rose 298% year-over-year, powered largely by paper gains on its investments in Anthropic and SpaceX.

Alphabet booked $99 billion in "unrealized and realized" gains on equity securities in its investment portfolio, adding $77.1 billion to net income after taxes. Those gains contributed $6.26 of Alphabet's $9.11 in earnings per share.

SpaceX, in which Google held a roughly 6% stake at the end of 2025, went public in early June at a $1.77 trillion valuation — up from $400 billion a year earlier as a private company. Anthropic's private valuation jumped from $350 billion to $965 billion over the same period. Both surges flowed through to Alphabet's bottom line.

Alphabet's windfall traces to an initial $300 million investment in Anthropic in April 2023, since grown to $13.3 billion, plus commitments of up to $30 billion more. As part of the deal, Anthropic committed to buying at least five gigawatts of computing capacity from Google Cloud — roughly the output of five nuclear reactors.

Alphabet's Q2 revenue rose 24% to $119.8 billion, with Google Cloud growing 82%. Chief executive officer Sundar Pichai said the results proved the company's "full stack approach to AI is delivering real, measurable value."

The bulk of the profit is on paper. Private valuations for Anthropic and SpaceX can move sharply, meaning the gains could reverse if markets or investor sentiment turn.

The quarter shows how large tech firms are turning early AI bets into balance-sheet gains as valuations climb. For Alphabet, a stake taken for strategic reasons — securing cloud demand and a foothold in frontier AI — is now reshaping its financials.