Alphabet Inc. stock research
FY2025 Q2
Alphabet (GOOGL) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased from both the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross profit expanded, yet gross margin weakened slightly versus the prior quarter but improved compared to a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased from both the prior quarter and the same quarter last year, while cost of revenue also rose in both comparisons. Gross profit expanded, yet gross margin weakened slightly versus the prior quarter but improved compared to a year ago.
- Gross margin saw a marginal weakening from the preceding quarter, as revenue grew at a slightly slower pace relative to cost of revenue. On a year-over-year basis, the margin improvement was supported by revenue growth outpacing cost expansion.
- Compared to the immediately preceding quarter, revenue and gross profit were both higher, but the gross margin was slightly lower. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.5%
Gross profit
$57.4B
Revenue
$96.4B
Cost of revenue
$39.0B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+1.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $88.3B | $51.8B | $36.5B | 58.7% |
| Dec 31, 2024 | $96.5B | $55.9B | $40.6B | 57.9% |
| Mar 31, 2025 | $90.2B | $53.9B | $36.4B | 59.7% |
| Jun 30, 2025 | $96.4B | $57.4B | $39.0B | 59.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.2 pts
Year-over-year change
Jun 30, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin saw a marginal weakening from the preceding quarter, as revenue grew at a slightly slower pace relative to cost of revenue. On a year-over-year basis, the margin improvement was supported by revenue growth outpacing cost expansion.
Compared to the immediately preceding quarter, revenue and gross profit were both higher, but the gross margin was slightly lower. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor the relationship between revenue growth and cost of revenue growth to assess whether the slight margin weakening observed this quarter persists or reverses.