Alphabet C 2025 Q3 Earnings Revenue Surges 15.9%, Net Income Grows 33%

Alphabet C (GOOG) delivered a robust Q3 2025 performance, surpassing Wall Street expectations across key metrics. The company reported revenue of $102.35 billion, a 15.9% year-over-year increase, and net income of $34.98 billion, reflecting 33% growth. Analysts had projected $99.79 billion in revenue and $2.29 in EPS, but Alphabet’s actual results of $102.35 billion and $2.89 EPS (up 35%) underscored strong operational momentum. The company also raised its 2025 capital expenditure guidance to $91–93 billion, citing sustained demand for Google Cloud and AI infrastructure.

Revenue

Alphabet’s Q3 revenue was driven by double-digit growth across all segments. Google Services, the largest contributor, generated $87.05 billion, fueled by robust performance in Google Search & Other ($56.57 billion), YouTube Ads ($10.26 billion), and Google Subscriptions, Platforms, and Devices ($12.87 billion). Google Cloud maintained its upward trajectory, reporting $15.16 billion in revenue—a 34% year-over-year increase—while Google Advertising totaled $74.18 billion, up 12.6% from $65.85 billion. Smaller segments, including Google Properties ($66.83 billion) and Google Network ($7.35 billion), also contributed to the overall growth.

Earnings/Net Income

Alphabet’s Q3 net income surged to $34.98 billion, a 33% year-over-year increase, with EPS rising 35% to $2.89. This marked the 20th consecutive year of profitability for the company, highlighting its resilience and effective cost management. The earnings growth outpaced analyst expectations of $2.29 per share, reinforcing confidence in Alphabet’s ability to capitalize on its core advertising and cloud businesses.

Price Action

Alphabet C’s stock price demonstrated strong post-earnings momentum, rising 2.44% in the latest trading day, 8.97% for the week, and 12.61% month-to-date. The shares traded at $289.14 in after-hours trading, reflecting investor optimism about the company’s strategic initiatives and AI-driven growth.

Post-Earnings Price Action Review

The stock’s performance following the earnings release highlighted market enthusiasm for Alphabet’s expanded capital expenditure guidance and AI advancements. Investors reacted positively to the company’s commitment to scaling infrastructure, particularly in Google Cloud, where demand remains robust. The 4.8% post-earnings surge in after-hours trading underscored confidence in Alphabet’s long-term growth trajectory, supported by its AI Overviews and Gemini app’s 650 million monthly active users.

CEO Commentary

CEO Sundar Pichai emphasized Alphabet’s "strong momentum" across the business, particularly in AI and Cloud. He noted the global rollout of AI Overviews and AI Mode in Search, along with Gemini’s capacity to process seven billion tokens per minute. Pichai highlighted the company’s ability to scale AI infrastructure rapidly, stating, "Our full-stack approach to AI is delivering results at speed." The CEO also reiterated confidence in Google Cloud’s $155 billion backlog, signaling sustained demand for enterprise AI solutions.

Guidance

Alphabet raised its 2025 capital expenditure guidance to $91–93 billion, up from previous estimates, to meet growing Cloud customer demand and AI infrastructure needs. Management expects continued double-digit revenue growth across all segments, driven by advertising, Cloud, and AI innovations. Qualitatively, the company remains focused on accelerating AI integration into its platforms while maintaining disciplined cost management.

Additional News

Alphabet’s Q3 results were accompanied by strategic updates, including the expansion of its AI Overviews feature and the Gemini app’s milestone of 650 million monthly active users. The company also announced a $155 billion Cloud backlog, reflecting strong enterprise adoption of its AI solutions. Additionally, Alphabet’s management highlighted record traffic acquisition costs (TAC) of $14.88 billion, underscoring the scale of its advertising ecosystem. These developments position the company to maintain its leadership in AI-driven digital services.

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