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.
“Alphabet had a terrific quarter, with double-digit growth across every major part of our business,” stated Sundar Pichai, CEO of Alphabet and
Google.
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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%.