key takeaways
- Alphabet on Wednesday reported revenue of $102.3 billion in the third quarter of 2025, surpassing $100 billion in quarterly revenue for the first time.
- Google Cloud, which includes Alphabet’s AI services, saw revenue rise 34% year-over-year.
- Alphabet’s $100 billion quarter shows that AI has transformed from an experimental feature to a major revenue driver.
On Wednesday, Google’s parent company Alphabet… announced Its quarterly revenue exceeded $100 billion in the third quarter of the year – the first time the company has reached this milestone. The earnings report showed that Alphabet’s AI bet was paying off in the form of rising revenues for its AI services, especially Google Cloud.
Alphabet reported revenue of $102.3 billion in the third quarter of 2025, a 16% increase and doubling year-on-year. Ffrom 50 billion dollars Just five years ago. This figure was far ahead of analysts’ estimates $99.89 billion For the quarter. Net income rose 33% to nearly $35 billion.
Other big tech companies have posted quarterly revenue before. For example, Amazon surpassed $100 billion in quarterly revenue for the first time fourth quarter of 2020With total sales for that period of $125.6 billion. is an e-commerce giant expected to report Revenue for the third quarter of 2025 ranged from $174 billion to $179.5 billion on Thursday.
Apple also achieved quarterly revenue of more than $ 100 billion for the first time. First quarter of financial year 2021Driven by strong iPhone 12 sales. Apple will release its fourth-quarter earnings after the bell on Thursday and is expected to report Revenue of $102.1 billion,
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Alphabet’s growth was driven by Google Cloud, which houses Alphabet’s AI services. The division’s revenue grew 34% year-over-year to $15.2 billion, reflecting growing demand for AI. This segment saw a backlog of customer requests, as demand for enterprise AI infrastructure and services exceeded the company’s ability to supply them. Alphabet CEO Sundar Pichai ended the quarter “with $155 billion in backlog,” with growth of 46% quarter over quarter.
Alphabet’s $100 billion quarter doesn’t just mark a financial accomplishment. according to tech buzzIt’s also proof that AI has transformed from an experimental feature to a major revenue stream. The company’s successful range of AI products, including cloud services for enterprises, shows that it is fully working on AI as the main growth engine.
Pichai emphasized that almost every major generator AI startup Relies on Google CloudPositioning Alphabet as an essential part of the AI economy. He said more than 70% of Google Cloud’s existing customers use its AI products and cited the example of enterprise customers like Best Buy. Pichai noted that Google Cloud signed more than $1 billion in deals with enterprise customers in the first nine months of the year, compared with the previous two years.
“This was a great quarter for Alphabet, driven by double-digit growth in every major part of our business,” Pichai told investors during an earnings call on Wednesday. “We are seeing AI now driving real business results in the company.”
Alphabet is on track to rival some of its biggest competitors in terms of revenue. For example, Microsoft, 40% revenue growth recorded Wednesday in its Azure cloud business. Azure revenue reached $30.9 billion, up 28% from last year.
Alphabet also revealed in its earnings report on Wednesday that its flagship AI app, Google Gemini, now has more than 650 million monthly active users, up from 450 million in the previous quarter. Gemini is playing catch-up with OpenAI’s ChatGPT, which was 800 million users per weekThat’s according to comments from OpenAI CEO Sam Altman earlier this month.
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Other parts of Alphabet’s business are also growing rapidly – Google Search and YouTube both saw double-digit growth. Google search revenue rose 15% to $56.6 billion while YouTube advertising rose 15% to $10.3 billion.
This year, Alphabet is doubling capital expenditures, or spending mostly on data centers and custom AI chips. The company is expected to spend between $91 billion and $93 billion on capital expenditures Amazon’s $118 billion And Meta’s $70 billionand from above $52.5 billion In 2024.
Even with those big investments, Alphabet remains profitable. Its operating marginOr profit from core business operations per dollar of sales, was up 30.5% in the third quarter.
alphabet stock Was up 5% today and was up more than 50% year-to-date.
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key takeaways
- Alphabet on Wednesday reported revenue of $102.3 billion in the third quarter of 2025, surpassing $100 billion in quarterly revenue for the first time.
- Google Cloud, which includes Alphabet’s AI services, saw revenue rise 34% year-over-year.
- Alphabet’s $100 billion quarter shows that AI has transformed from an experimental feature to a major revenue driver.
On Wednesday, Google’s parent company Alphabet… announced Its quarterly revenue exceeded $100 billion in the third quarter of the year – the first time the company has reached this milestone. The earnings report showed that Alphabet’s AI bet was paying off in the form of rising revenues for its AI services, especially Google Cloud.
Alphabet reported revenue of $102.3 billion in the third quarter of 2025, a 16% increase and doubling year-on-year. Ffrom 50 billion dollars Just five years ago. This figure was far ahead of analysts’ estimates $99.89 billion For the quarter. Net income rose 33% to nearly $35 billion.
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