Company: GOOGL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001652044-25-000062
Chunk: 14

Company: Alphabet Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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)(295)Foreign currency exchange gain (loss), net(173)(69)(411)(175)Gain (loss) on debt securities, net(310)165 (772)367 Gain (loss) on equity securities, net(714)1,286 1,529 11,044 Performance fees128 (83)232 (123)Income (loss) and impairment from equity method investments, net32 419 6 397 Other140 155 395 579 Other income (expense), net$126 $2,662 $2,969 $13,845 

OI&E, net increased $2.5 billion from the three months ended June 30, 2024 to the three months ended June 30, 2025 primarily due to an increase in net gains on equity and debt securities. The increase was primarily due to an increase in net unrealized gains on equity securities resulting from market-driven changes and fair value adjustments related to observable transactions, and increased net gains on debt securities due to lower market interest rates.

OI&E, net increased $10.9 billion from the six months ended June 30, 2024 to the six months ended June 30, 2025. The increase was primarily due to an increase in net unrealized gains on equity securities resulting from fair value adjustments related to observable transactions and market-driven changes.

For additional information, see Note 3 and Note 7 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.

Provision for Income Taxes

The following table presents provision for income taxes (in millions, except effective tax rate):

Three Months EndedSix Months EndedJune 30,June 30,2024202520242025Income before provision for income taxes$27,551 $33,933 $55,866 $75,722 Provision for income taxes$3,932 $5,737 $8,585 $12,986 Effective tax rate14.3 %16.9 %15.4 %17.1 %

The effective tax rate increased from the three months ended June 30, 2024 to the three months ended June 30, 2025. This increase was primarily due to a decrease in SBC-related tax benefits, and a non-deductible legal settlement in the U.S., partially offset by changes in prior period tax positions.

The effective tax rate increased from