Google parent’s revenue surges 16% to $102.4 billion, driven by booming AI partnerships and strong cloud performance
Alphabet (GOOGL) delivered a blockbuster third quarter, surpassing Wall Street’s expectations and achieving its first-ever $100 billion revenue quarter, fueled by soaring demand for its AI-powered cloud services. Shares jumped more than 5% in after-hours trading following the announcement.
For the three months ending September 30, Alphabet reported revenue of $102.4 billion, up from $88.3 billion a year earlier and above analyst forecasts of $99.85 billion, according to Bloomberg. The company posted adjusted earnings per share (EPS) of $2.87, far exceeding the $2.26 expected by analysts and last year’s $2.12.
The biggest growth driver was Google Cloud, which surged 34% year-over-year to $15.2 billion, beating estimates of $14.8 billion. CEO Sundar Pichai highlighted the milestone, saying, “Alphabet had a terrific quarter, with double-digit growth across every major part of our business. We delivered our first-ever $100 billion quarter.”
Alphabet also raised its capital expenditures outlook for 2025 to $92 billion, up from its previous $85 billion midpoint, reflecting heightened investment in AI infrastructure and data centers.
Recent high-profile AI partnerships have further cemented Google’s dominance in the AI ecosystem. OpenAI added Google Cloud to its list of infrastructure providers, while Meta signed a $10 billion deal to expand its use of Google Cloud’s computing capacity. Meanwhile, AI startup Anthropic agreed to use up to 1 million of Google’s custom AI chips (TPUs), a deal analysts estimate could yield $10 billion in annual revenue.
Despite rising competition from AI chatbots like ChatGPT, Alphabet’s Search revenue climbed to $56.6 billion, topping expectations and reinforcing Google’s resilience amid industry disruption.
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