Alphabet crossed a milestone with Q3 revenue of $102.35 billion -- a 16% annual increase and its first-ever quarterly revenue of more than $100 billion.
Google's parent company reported more than $85 billion in third-quarter sales based on the performance and the need for
cloud services, mostly driven by growth in AI infrastructure and generative AI solutions and computing power.
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“Alphabet had a terrific quarter, with
double-digit growth across every major part of our business,” stated Sundar Pichai, CEO of Alphabet and Google.
Google Cloud revenue for Q3 came in at $15.2 billion, up
34% year-over-year. The Zacks Consensus Estimate for Google Cloud revenue was $14.7 billion, with 29.5% revenue growth year-on-year.
Total advertising revenue rose 13% YoY to $74.18 billion. Search and other revenue grew 15% YoY to $56.57 billion, and YouTube advertising revenue rose 15% YoY to $10.26 billion.
The jump in YouTube paid
subscriptions to more than 300 million was led by Google One cloud storage and YouTube Premium.
Google's video service made significant
changes to its product team Wednesday, with Christian Oestlien stepping in to lead a newly created group for all of the video subscription products.
Oestlien, who will be vice president of YouTube’s Subscriptions Products, had previously served as a vice president of product management. He reports directly to CEO Neal Mohan, and will
oversee YouTube TV, YouTube Music and YouTube Premium as well as podcasts, commerce and YouTube Primetime Channels.
Despite its quarterly revenue results, the company increased its
capital expenditure forecast for 2025 to between $91 billion and $93 billion, primarily to fund AI infrastructure, including data centers.
Microsoft also reported earnings today for its Q1
2026 fiscal year. Microsoft ad revenue rose 16%, with overall revenue rising 18% to $77.7 billion. Revenue for the previous two quarters was up 21%.