Alphabet’s Q3 revenue surges to $102.35 billion as AI demand fuels growth across Google’s advertising and Cloud units
Alphabet Inc. reported stronger-than-expected third-quarter results, driven by strong demand for artificial intelligence (AI) services across its advertising and cloud businesses.
Google’s parent company generated total revenue of $102.35 billion, beating analysts’ estimates of $99.89 billion, according to LSEG data.
Revenue rose 16% year over year to $102.3 billion.
Alphabet reported a strong July-September quarter; It generated profits of approximately $35 billion, or $2.87 per share, up 33% from the same period last year.
Alphabet raises its capital spending forecast once again
Alphabet raised its capital spending forecast for 2025 to $91-93 billion from $85 billion in July; Much of the spending has been directed to expanding data centers supporting growing AI operations.
The company raised its spending outlook three times in 2025 after reporting $52.5 billion in 2024. The investment underscores Alphabet’s ambition to maintain leadership in AI infrastructure and data centers.
Google Cloud continues its momentum with 34% revenue growth
Google Cloud continued to be one of Alphabet’s fastest-growing segments; revenue rose 34% to $15.16 billion, beating estimates of $14.72 billion.
The growth was driven by enterprise demand for AI-driven infrastructure, data analytics, and Vertex AI tools, as well as the adoption of dedicated Tensor Processing Units (TPUs).
Although competition has intensified as rivals cut prices and expanded productive AI offerings, the unit continues to close the gap with Microsoft Azure and Amazon Web Services.
The power of advertising eases market concerns
Revenue from Google’s core advertising business rose 12.6% to $74.18 billion; This was well above the $71.79 billion estimate.
The strong advertising performance helped allay investors’ fears that the adoption of artificial intelligence could erode Google’s search dominance.
Sundar Pichai says artificial intelligence is gaining strong momentum
“Alphabet had a terrific quarter with double-digit growth in every major part of our business. We delivered our first $100 billion quarter,” CEO Sundar Pichai said in a statement.
Pichai added that the company’s bold AI strategy is providing “strong momentum,” citing the rapid global rollout of AI-powered features in Google Search and continued progress in Gemini AI models.
Alphabet said its workforce reached nearly 190,000 employees at the end of September, an increase of more than 8,000 from the same period a year ago.
