In brief
Alphabet reported a 25% year‑on‑year jump in Q3 revenue to $127.58 billion, supported by a 103% increase in Google Cloud revenue and an 11% rise in Google Services. However, net income slumped 24% to $26.47 billion after a reversal from investment gains to losses. CEO Sundar Pichai highlighted AI investments as key to the growth in search and cloud demand.
Alphabet Inc., the parent company of Google, announced Wednesday that its third‑quarter revenue climbed 25 percent year on year to $127.58 billion, while net income fell 24 percent to $26.47 billion, according to a filing on October 28.
The revenue increase was driven largely by strong growth in Google’s search and cloud computing businesses. Google Cloud revenue surged 103 percent to $30.71 billion, driven by robust demand for enterprise artificial intelligence (AI) infrastructure and solutions, and the segment’s operating income jumped to $11.12 billion from $3.59 billion a year earlier. Google Services revenue grew 11 percent to $96.3 billion, including a 12‑percent rise in Google Search revenue to $63.35 billion.
Operating income rose 30 percent to $40.58 billion for the quarter ended September 30, but diluted earnings per share fell from $2.87 to $2.12, and net income available to common shareholders dropped 25 percent to $26.17 billion.
The decline in net income was largely attributable to a reversal in investment performance. Alphabet reported a net loss of $8.66 billion on equity securities, the opposite of a $10.73 billion net gain recorded a year earlier.
CEO Sundar Pichai said the company's AI investments were driving search query growth, with the year‑on‑year growth rate reaching its highest level in five years. He also noted that the Gemini AI app had reached 1 billion users.
"The company's AI investments were driving search query growth, with the year‑on‑year growth rate reaching its highest level in five years," said Pichai.
