Google parent Alphabet reports $100 billion revenue

Google parent Alphabet has reported its first-ever $100 billion quarterly revenue, with strong performances across search, YouTube, and its rapidly growing cloud business.

The company’s revenue rose 16% year-on-year to $102.3 billion in the third quarter, surpassing analyst expectations. Net income surged 33% to $35 billion. “Alphabet had a terrific quarter, with double-digit growth across every major part of our business,” said CEO Sundar Pichai in a statement.

Google’s core search and advertising business remained the primary driver, generating $56.6 billion, up from $49.4 billion a year earlier. YouTube advertising revenue increased to $10.3 billion from $8.9 billion.

Google Cloud continued its momentum, with revenue climbing 34% to $15.2 billion. Pichai credited the company’s “ambitious approach to offering AI,” citing the rollout of AI features in Google Search and its Gemini AI models..

However, results were partly offset by a $3.5 billion fine from the European Commission in September for ad tech competition violations. Excluding the penalty, operating income would have increased 22%, compared with the reported 9%, the company said.

Alphabet expects capital expenditures of $91-93 billion in 2025 as it expands data centres and computing power to support AI growth. Pichai noted spending will continue to rise next year to meet growing infrastructure demand.

The company also reported over 300 million paid subscriptions across Google One and YouTube Premium. Meanwhile, its ‘Other Bets’ division, which includes self-driving unit Waymo, posted a $1.4 billion loss on $344 million in revenue.

The company’s stock has climbed nearly 40% this year, supported by its financial performance and a recent U.S. court ruling that rejected a government request to force its search giant to sell its Chrome browser. Despite competitive pressures from AI platforms like ChatGPT and Perplexity, Google’s search revenue grew 15% year-on-year.