Alphabet stock rose in after-hours trading — (GOOG) +6%, (GOOGL) +6% — after the company’s third-quarter earnings showed a healthy beat on profits and revenue that surpassed $100B for the first time and continued to outpace analyst expectations thanks largely to broad double-digit percentage increases.
Revenues overall rose 16% year-over-year to $102.3B, beating consensus for $100.1B (13.5% growth). In constant currency, revenues rose 15%.
With cost growth staying under control, net income jumped 33%, to just under $35B, and earnings per share rose 35% to $2.87. Analyst had expected $2.27 in EPS.
“Our full stack approach to AI is delivering strong momentum and we’re shipping at speed, including the global rollout of AI Overviews and AI Mode in Search in record time,” CEO Sundar Pichai said in initial reaction. “In addition to topping leaderboards, our first-party models, like Gemini, now process 7 billion tokens per minute, via direct API use by our customers. The Gemini App now has over 650 million monthly active users.”
“Google Cloud accelerated, ending the quarter with $155 billion in backlog. And we have over 300 million paid subscriptions led by Google One and YouTube Premium,” he added.
Segment results
The company showed double-digit sales gains almost across the board. Revenues by segment: Google Search and other, $56.57B (up 14.5%); YouTube ads, $10.26B (up 15%); Google Network, $7.35B (down 2.6%); Google subscriptions, platforms, and devices, $12.87B (up 20.8%); Google Cloud, $15.16B (up 33.5%); Other Bets, $344M (down 11.3%).
Operating income by segment: Google Services, $33.53B (up 8.7%); Google Cloud, $3.59B (up 84.6%); Other Bets, -$1.43B (vs. -$1.12B a year ago).
Capital spending
As with all big-tech and AI-adjacent names in 2025, investor eyes were on the company’s quarterly updates of capital expenditures, now largely a proxy for spending on artificial intelligence. And Alphabet (GOOG) (GOOGL) bumped those expectations yet again.
“With the growth across our business and demand from Cloud customers, we now expect 2025 capital expenditures to be in a range of $91 billion to $93 billion,” the company said.
Alphabet (GOOG) (GOOGL) had previously signaled $22.4B in capex for the third quarter — it came in at just under $24B — and analysts had expected full-year capex would come in at just over $84B.
“We are investing to meet customer demand and capitalize on the growing opportunities across the company,” Pichai said alongside the earnings release.