Alphabet Inc. announced robust third-quarter results, exceeding analyst expectations, largely driven by significant demand for artificial intelligence (AI) services across its diverse advertising and cloud operations. The Google parent company reported total revenue of $102.35 billion, comfortably surpassing LSEG data estimates of $99.89 billion. This represents a substantial 16% year-on-year increase in revenue, reaching $102.3 billion for the July–September quarter. The company also posted an impressive profit of nearly $35 billion, or $2.87 per share, marking a 33% increase compared to the same period in the previous year.

Highlighting its commitment to maintaining leadership in AI, Alphabet raised its capital expenditure forecast for 2025 to $91–93 billion, an increase from the $85 billion projected in July. The majority of this elevated spending is earmarked for expanding data centers, which are crucial for supporting its rapidly growing AI operations. This marks the third time in 2025 that the company has increased its spending outlook, following a reported $52.5 billion in 2024, underscoring its strategic investment in AI infrastructure and data centers.

Google Cloud emerged as one of Alphabet's fastest-growing segments, demonstrating remarkable momentum. Its revenue climbed 34% to $15.16 billion, beating estimates of $14.72 billion. This growth was fueled by strong enterprise demand for AI-driven infrastructure, advanced data analytics, and the adoption of its specialized Vertex AI tools and custom Tensor Processing Units (TPUs). Google Cloud continues to narrow the competitive gap with rivals like Microsoft Azure and Amazon Web Services, even amidst intensifying competition characterized by price reductions and expanded generative-AI offerings.

Revenue from Google’s core advertising business also showed considerable strength, jumping 12.6% to $74.18 billion, which comfortably exceeded the $71.79 billion forecast. This strong performance in advertising helped to alleviate investor concerns regarding the potential impact of AI adoption on Google’s dominant search position. CEO Sundar Pichai affirmed the company's success, stating, "Alphabet had a terrific quarter, with double-digit growth across every major part of our business. We delivered our first-ever $100 billion quarter." Pichai further emphasized that the company’s bold AI strategy is generating “strong momentum,” citing the rapid global rollout of AI-powered features in Google Search and continued advancements with its Gemini AI models. Alphabet concluded the quarter with a workforce of approximately 190,000 employees at the end of September, an increase of over 8,000 compared to the same period a year ago.