In brief
Alphabet posted a record‑breaking 25% jump in third‑quarter revenue to $127.58 billion, largely driven by search and cloud services. However, the company’s net income fell 24% to $26.47 billion after losses on investment securities reversed a prior year gain. CEO Sundar Pichai highlighted AI investments and the Gemini app’s 1‑billion‑user milestone as key growth drivers.
On Wednesday in San Francisco, Alphabet, the parent company of Google, announced its third‑quarter results, reporting a 25% year‑on‑year rise in revenue to $127.58 billion, driven mainly by growth in its search and cloud computing businesses.
Operating income for the quarter reached $40.58 billion, a 30% increase from the previous year, while diluted earnings per share fell to $2.12 from $2.87.
Alphabet’s net income fell 24% to $26.47 billion, largely because the company’s equity securities flipped from a $10.73 billion net gain last year to a $8.66 billion net loss this quarter.
Google Cloud revenue surged 103% to $30.71 billion, reflecting strong demand for enterprise AI infrastructure, and its operating income jumped to $11.12 billion from $3.59 billion a year earlier.
Google Services revenue grew 11% to $96.3 billion, with Google Search and other revenue up 12% to $63.35 billion.
Alphabet CEO Sundar Pichai said that the company’s AI investments were driving search query growth, noting the year‑on‑year growth rate had reached its highest level in five years. He also mentioned that the Gemini AI app had reached one billion users.
