Google parent Alphabet's quarterly revenue surpasses $100B for first time
What's the story
Alphabet, the parent company of Google, has reported a record-breaking quarterly revenue of $102.35 billion. This is the first time the tech giant has crossed the $100 billion mark in a single quarter. The figure exceeded Wall Street's expectations of an adjusted estimate of $99.89 billion. The company's shares rose by 5% in after-hours trading following the announcement of quarterly results. Alphabet stock is up 45% so far this year.
Cloud performance
Impressive growth in Alphabet's cloud unit
Alphabet's cloud unit, which includes its AI services, has shown impressive growth. The company reported a revenue of $15.15 billion from this segment, a whopping 35% increase compared to the same period last year. "We continue to drive strong growth in new businesses. Google Cloud accelerated, ending the quarter with $155 billion in backlog," CEO Sundar Pichai said in the earnings release.
Investment increase
Increase in expected capital expenditures
Along with the stellar revenue numbers, Alphabet also announced an increase in its expected capital expenditures for fiscal year 2025. The company now expects these expenses to be between $91 billion and $93 billion, up from the previous estimate of $85 billion. Most of this budget is allocated toward technical infrastructure such as data centers. Google's AI chatbot Gemini now has more than 650 million monthly active users, the company said.
Financial growth
Net income and advertising revenue surge
Alphabet's net income rose to $34.97 billion, or $2.87 per share, from $26.3 billion, or $2.12 per share in the same quarter last year. The company also reported an overall advertising revenue of $74.18 billion—an increase from last year's figure of $65.85 billion. YouTube advertising revenue was at $10.26 billion, beating Wall Street's expectations and contributing to the company's financial success for the quarter ending September 30.