Alphabet tops $100 billion quarterly revenue for first time, cloud grows 34%
Alphabet reported third-quarter earnings above analyst expectations. Shares rose 5 percent in after-hours trading.
Here is the company’s performance compared to the forecasts of analysts participating in the LSEG survey:
- Revenues: $102.35 billion etc. $99.89 billion estimate
- Earnings per share: $2.87 not immediately comparable
Wall Street is also watching several other figures from the report:
- YouTube ad revenue: $10.01 billion versus $10.26 billion, according to StreetAccount
- Google Cloud revenue: $14.74 billion versus $15.15 billion, according to StreetAccount
- Traffic acquisition costs (TAC): $14.82 billion versus $14.87 billion, according to StreetAccount
Alphabet reported solid momentum in its cloud business thanks to strong demand for AI. The company also announced an increase in capital expenditures expected for 2025.
“With growth in our business and demand from Cloud customers, we expect 2025 capital expenditures to be in the range of $91 billion to $93 billion,” the company said in its earnings release. report Wednesday.
Earlier this year, the company raised its capital spending expectation from $75 billion to $85 billion. Most of this went to technical infrastructure like data centers
The company reported cloud revenue of $15.15 billion, up 35% from the same period last year.
“We continue to deliver strong growth in new business. Google Cloud accelerated and ended the quarter with a $155 billion backlog,” CEO Sundar Pichai said in the earnings release.
Google’s search business generated $56.56 billion in revenue, up 15% from the previous year.
Alphabet’s net income rose to $34.97 billion, or $2.87 per share, from $26.3 billion, or $2.12 per share, in the same period a year ago. In September, Google was slapped with a $3.45 billion antitrust fine by European Union regulators for anticompetitive practices in its lucrative ad tech business. This penalty impacted reported net income.
YouTube ad revenue was $10.26 billion, above Wall Street’s expectations. Alphabet reported total ad revenue rose to $74.18 billion, up from $65.85 last year.
Other Bets, which includes the company’s life sciences unit Verily and autonomous vehicle unit Waymo, reported revenue of $344 million in the quarter. This is down from $388 million in the same quarter last year. It reported a loss of $1.42 billion, compared to $1.11 billion in the same quarter last year.
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