Alphabet Inc., the parent company of Google, has achieved a monumental financial milestone—its first-ever $100 billion quarter, generating $102.3 billion in revenue between July and September. This marks a 16% year-over-year increase and underscores the company’s unshakable dominance in digital advertising and AI innovation. The tech giant also reported a profit of nearly $35 billion, or $2.87 per share, representing a 33% surge from the same period last year. Both figures exceeded Wall Street expectations, prompting a 6% surge in Alphabet’s stock during extended trading, positioning it for new record highs.

This historic performance comes amid mounting legal scrutiny and competitive pressure from the U.S. Justice Department’s landmark monopoly case against Google’s search engine. The case concluded with a measured verdict by U.S. District Judge Amit Mehta, who rejected proposals to break up Google, instead pointing to rapid advancements in artificial intelligence as a natural source of new competition. Judge Mehta cited emerging AI-driven “answer engines” such as ChatGPT and Perplexity as evidence that the market is evolving beyond traditional search dominance.

Nevertheless, the competition is heating up. Both OpenAI and Perplexity have introduced AI-powered web browsers, directly challenging Google’s market-leading Chrome. Although the Justice Department’s push to force Google to divest Chrome failed, the company has responded by embedding advanced AI capabilities across its products — from search and Chrome to its productivity suite — reinforcing its market position while accelerating its evolution into an AI-first company.

Alphabet CEO Sundar Pichai highlighted the progress of these efforts during an analyst call, revealing that the company’s flagship Gemini AI app now boasts 650 million monthly users. Pichai described Google as being in an “expansionary moment,” crediting AI as the driving force behind the company’s growth momentum and its ability to deliver measurable business outcomes across multiple verticals.

To sustain this growth, Alphabet has embarked on an aggressive capital expenditure plan, mirroring similar moves by Microsoft and Nvidia. The company expects to invest between $91 billion and $93 billion this fiscal year, up from $85 billion previously projected, with most funds directed toward building vast AI data centers. CFO Anat Ashkenazi noted that investors should anticipate even higher spending in 2026 as Alphabet fortifies its infrastructure to support long-term AI integration.

The company’s traditional advertising business remains a cornerstone of its profitability. Google’s ad sales climbed 13% to $74.2 billion, maintaining its dominance in digital marketing. Meanwhile, the Google Cloud division — which provides enterprise AI and data solutions — recorded $15.2 billion in revenue, a striking 34% year-over-year increase, making it the fastest-growing segment of Alphabet’s business.

However, not all legal battles have concluded favorably. Alphabet still faces another major antitrust lawsuit concerning its ad technology stack. Earlier this year, U.S. District Judge Leonie Brinkema found elements of Google’s ad practices constituted an illegal monopoly. The Justice Department is now advocating that Google be ordered to divest parts of its ad network, with a final ruling expected in early 2026 — a potential turning point for the company’s advertising empire.

Despite these challenges, Alphabet’s latest results reaffirm its financial resilience and technological dominance, particularly in AI innovation, data infrastructure, and global advertising. As analyst Thomas Monteiro of Investing.com observed, Google’s bold investment strategy signals one thing clearly: the company has no intention of surrendering its lead in the evolving era of AI-driven search and computing.