Alphabet's quarterly revenue surpasses $100 billion for the first time
- Revenue: $102.35 billion vs. $99.89 billion expected.
- Earnings per share: $3.10 (adjusted) vs. $2.33 expected.
- YouTube advertising revenue: $10.26 billion vs. $10.01 billion.
- Google Cloud revenue: $15.15 billion vs. $14.74 billion.
- Triple Access Costs (TAC): $14.87 billion vs. $14.82 billion.
What’s happening:-
Shares of Alphabet rose sharply in after-hours trading on Wednesday, following the release of the company’s third-quarter results.
What happened:-
Alphabet posted better-than-expected sales and earnings for the latest quarter.
The company crossed $100 billion in quarterly revenues for the first time in its history and raised its 2025 capex guidance.
Alphabet beats Wall Street expectations and achieves record revenues driven by the AI boom
How were the results:-
The Mountain View, California-based company reported low double-digit sales growth for the third quarter.
Revenues grew 16% year-over-year to $102.35 billion, beating consensus estimates of $99.64 billion.
Earnings came in at $2.87 per share, topping Wall Street expectations of $2.33 per share.
Why it matters:-
Soaring demand for AI provided a boost to Alphabet’s results for the quarter, sending revenue from the company’s core advertising and cloud computing segments much higher than estimates.
Revenues from Google Search surged to $56.57 billion, from $49.39 billion in the year-ago quarter. Revenues from Google Cloud, one of Alphabet’s fastest-growing segments, jumped 34% to $15.16 billion, driven by strong enterprise demand for the company’s AI infrastructure.
GOOGL stock price prediction: What's next for Alphabet
Google ad revenue climbed to $74.18 billion, signalling strong demand for the digital ad market despite concerns around the economy and stiff competition.
Alphabet guided to capital expenditures of $91-$93 billion for 2025, up from its original estimate of $75 billion in February and from $85 billion announced in July. The company had spent $52.5 billion in 2024.
Alphabet said that Gemini now has more than 650 million monthly active users, up from 450 million in the previous quarter. The company also reported that the backlog for Google Cloud had risen to $155 billion.
“Our full stack approach to AI is delivering strong momentum and we’re shipping at speed, including the global rollout of AI Overviews and AI Mode in Search in record time,” CEO Sundar Pichai said.
AI-powered products are expanding
How shares responded:-
Alphabet’s shares jumped 6.7% to close at $293.01 in after-hours trading on Wednesday. The stock has surged around 71% over the past month.
What to watch:-
Investors will continue monitoring rising competition in the AI and cloud businesses, with peers announcing aggressive price cuts and new capabilities for GenAI.