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📂 Category: Tech Sector News,Company News,News
📌 Main takeaway:
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Key takeaways
- Third-quarter results for Alphabet, Google’s parent company, beat Wall Street estimates, with revenue surpassing the $100 billion mark for the first time.
- All sectors of the company, including its search engine service. Recorded revenue growth of at least 10% year-on-year.
- Search growth is important for Google, with some saying the company’s business may slow due to the popularity of ChatGPT and other chatbots.
Alphabet (GOOGL)’s third-quarter results beat analysts’ expectations, as the tech giant’s revenue topped $100 billion for the first time.
The parent company of Google and YouTube late Wednesday reported earnings per share of $2.87, up from $2.12 at the same time last year, while revenue reached $102.3 billion, up 16% year over year, with each metric topping the analyst consensus compiled by Visible Alpha.
Revenue from Google Cloud was $15.16 billion, compared to $11.35 billion last year and better than the analyst consensus of $14.77 billion. In the search and other sectors, Alphabet beat estimates with revenues of $56.57 billion, up 14.5% year over year.
Why is this growth important for the alphabet?
This was the first quarter in the company’s history that Alphabet’s revenue exceeded $100 billion. Each of its segments increased revenue by at least 10% from the same time last year, including Google Search, which some feared would see slow growth due to the popularity of AI-powered chatbots like ChatGPT.
Alphabet CEO Sundar Pichai said the company is “investing to meet customer demand and capitalize on growing opportunities across the company.” Alphabet said it now expects capital expenditures for this year to range between $91 billion and $93 billion, compared to the company’s estimate of $85 billion last quarter.
Last quarter, the tech giant raised its capital expenditure forecast to $85 billion from $75 billion previously, due to its plans to expand its data center buildout and spending on things like servers for artificial intelligence infrastructure.
Alphabet’s Class A shares rose more than 5% in recent after-hours trading. By the close of the regular trading session on Wednesday, the stock is up 45% since the beginning of 2025.
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