We are signing larger deals. We have signed more deals over $1 billion through Q3 this year than we did in the previous two years combined. As we scale, we are diversifying revenue.Today, 13 product lines are each at an annual run rate over $1 billion. We are deepening our relationships. Over 70% of existing Google Cloud customers use our AI products, including Bank OBV, Best Buy, and Fairpric Group.We are also the only cloud provider offering our own leading generative AI models including Gemini, Imagine, ...

TRENDING: You Don't Have To Dig Far To Cash In On Rare Earths Ballooning capital expenditures on AI data centers will benefit the entire tech stack of computer gear makers, analysts say. The trend is positive for AI stocks providing the picks and shovels for the modern-day gold rush. BNP Paribas analyst Karl Ackerman said the increased spending revealed Wednesday by tech giants Alphabet (GOOGL), Meta Platforms (META) and Microsoft (MSFT) has positive implications for more than just AI chipmakers AMD (AMD) a ...

Core Insights - Alphabet reported a strong third quarter, with revenue of $102.35 billion, up nearly 16% year-over-year, and EPS of $2.87, exceeding estimates by 35% [4][5] - The company is experiencing significant momentum in AI, which is not fully priced in, contrasting with competitors like Meta and Microsoft [4][8] - Alphabet's cloud revenue surged 34% year-over-year to $15.2 billion, outperforming Microsoft's Azure growth [5][17] Financial Performance - Alphabet's operating margins improved to 23.7%, a 650 basis point increase from the previous year [6] - The backlog for the cloud unit reached a record $155 billion, with $47 billion added in the quarter [6] - Search revenue grew by 15% year-over-year, and paid clicks increased from 4% to 7% [5] AI and Cloud Strategy - Over 70% of cloud customers are utilizing AI products, with the Gemini ecosystem attracting large enterprise deals worth around $1 billion [7] - Management raised full-year capital expenditure guidance to $91-93 billion, up from $85 billion, with 60% allocated to servers [7][8] Market Reaction and Analyst Sentiment - Analysts from Goldman and BFA project double-digit upside for Alphabet, with Goldman raising its 12-month price target to $330, indicating a 15% upside [13][15] - BFA's price target is set at $335, emphasizing Alphabet's strong position in AI infrastructure and usage [15][16] - The overall market sentiment is positive towards Alphabet, contrasting with the pressure faced by Meta and Microsoft [8][14]

Joining us now with more, Michael Nathansson, founding partner, senior research analyst at Moffett Nathansson. Michael, thank you very much for joining us. You have argued, I believe, on this very program and in your research, that Alphabet should be the most valuable company in the world.Why. >> Thanks for having me. It's an AI winner, right.I think what people are starting to wake up to is that their infrastructure advantage lets them invest in AI more efficiently than almost any other company. Right, Bri ...

Market Overview - The US-China trade truce is expected to create more stability in the relationship, although it is characterized as a truce rather than a breakthrough [9][11][12] - The Federal Reserve cut rates by 0.25 percentage points, with indications that further cuts are not guaranteed [2][4] - The Dow Jones Industrial Average gained over 200 points, while the S&P 500 and Nasdaq experienced slight declines [3][4] Big Tech Earnings - Meta's shares fell by 11% after announcing increased capital expenditures for the upcoming year, exceeding the $72 billion planned for this year [6][32] - Microsoft also reported a 2.2% decline in shares despite good underlying metrics, as it ramped up spending to meet demand [7][32] - In contrast, Alphabet's shares rose by 5% due to a 15% increase in search revenue and growth in its Gemini AI platform [8][32] US-China Trade Negotiations - President Trump expressed satisfaction with the progress made in trade negotiations, focusing on issues like fentanyl tariffs and soybean purchases [9][10] - The meeting between Trump and Xi was brief, lasting only about 90 minutes, and did not address significant topics like Taiwan or Russia [13][14] - The long-term trajectory still points towards decoupling between the US and China, with both nations leveraging their positions [15][19] Corporate Earnings Insights - Meta's Q4 guidance was perceived as soft, leading to investor skepticism about its future AI investments [36][39] - Google's AI mode has seen rapid adoption, with 75 million daily active users, contributing positively to its search business [41][44] - Amazon's upcoming earnings report is anticipated to focus on AWS growth, which needs to exceed 19% to regain investor confidence [50][52] Cardinal Health Performance - Cardinal Health reported a 22% increase in quarterly revenue, driven by strong demand across all operating segments [105][106] - The company is focusing on specialty pharmaceuticals through strategic acquisitions, contributing significantly to profit growth [107][110] - The firm remains optimistic about future growth despite potential regulatory changes affecting the healthcare landscape [111][115]

Core Insights - Alphabet's third-quarter 2025 earnings per share (EPS) reached $2.87, exceeding the Zacks Consensus Estimate by 26.99% and reflecting a year-over-year increase of 35.4% [1] - Total revenues for the quarter amounted to $102.35 billion, marking a 16% year-over-year growth (15% at constant currency) [2] Revenue Breakdown - Net revenues, excluding total traffic acquisition costs (TAC), were $87.47 billion, surpassing the consensus estimate by 3% and increasing 17.3% year over year [2] - Google Services revenues rose 13.8% year over year to $87.05 billion, accounting for 85.1% of total revenues, beating the Zacks Consensus Estimate by 2.43% [3] - Google Cloud revenues surged 33.5% year over year to $15.16 billion, representing 14.8% of total revenues for the quarter and exceeding the consensus estimate by 3.25% [3] Advertising Performance - Search and other revenues increased 14.5% year over year to $56.57 billion, surpassing the Zacks Consensus Estimate by 2.58% [4] - YouTube's advertising revenues improved 15% year over year to $10.26 billion, beating the consensus mark by 2.31% [5] - Google advertising revenues grew 12.6% year over year to $74.18 billion, accounting for 85.2% of total revenues, and also exceeded the consensus mark by 2.3% [6] Cloud and AI Developments - Google Cloud ended the quarter with a backlog of $155 billion, up 46% sequentially, with a 34% year-over-year increase in new customers [8] - Revenues from products built on Alphabet's generative AI models grew over 200% year-over-year, indicating strong adoption [10] Operating and Financial Metrics - Total costs and operating expenses for the quarter were $71.12 billion, up 19% year over year, leading to an operating margin of 30.5%, which contracted 180 basis points year over year [11] - Alphabet's cash, cash equivalents, and marketable securities stood at $98.5 billion as of September 30, 2025, an increase from $95.15 billion as of June 30, 2025 [13] Capital Expenditure Guidance - For 2025, Alphabet raised its capital expenditure guidance to between $91 billion and $93 billion, up from the previous estimate of $85 billion [15]

Key Points Alphabet crushed on earnings last night, and Google Cloud revenue grew 34%. Total sales growth was 16% for Alphabet, but capital expenditure is growing much faster. Alphabet's AI investments are creating revenue growth, but at a high cost. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock surged 5% through 11:45 a.m. ET Thursday after beating earnings forecasts last night. Before its Q3 report, analysts forecast the Google parent company would earn ...

Core Insights - Alphabet Inc. is a leading technology company with a strong focus on AI and cloud services, reflecting confidence in its strategic initiatives and financial health [1][2][3] Investment Outlook - Stifel Nicolaus has set a price target of $333 for Alphabet Inc., indicating a potential price increase of 21.28% from its current price of $274.57 [1][6] - The company's robust cash flow supports its ambitious AI spending plans, making it appealing to investors [3][6] AI Investment Strategy - Alphabet is significantly increasing its investment in AI infrastructure, committing a multibillion-dollar budget to enhance its capabilities [2][6] - This investment is expected to drive future growth and support the optimistic price target set by analysts [2][6] Market Performance - Alphabet's stock price recently increased by 2.65%, reaching $274.57, with strong trading volume of 38.49 million shares [4] - The stock has shown significant volatility, trading between $267.67 and $275.33, with a 52-week high of $275.34 [4] Market Position - Alphabet's market capitalization is approximately $3.32 trillion, indicating its significant presence in the technology sector [3] - The company is predicted to potentially surpass the combined market value of Nvidia and Palantir Technologies, currently at $5.4 trillion, within the next five years due to its strategic investments in AI [5]

Group 1: Alphabet Inc. Performance - Citigroup upgraded Alphabet Inc. to a "Buy" rating with a new price target of $343, up from $280, while the stock price was $274.57 [1][6] - Alphabet's Q3 revenues reached $102.4 billion, exceeding Wall Street's expectations of $99.85 billion, driven by a 34% increase in Google Cloud revenue to $15.2 billion [2][6] - The adjusted earnings per share (EPS) for Alphabet was $2.87, surpassing the expected $2.27 [2][6] Group 2: Meta Platforms Performance - Meta Platforms experienced an 8% decline in stock price due to disappointing Q3 results, with revenues of $51.24 billion slightly above expectations but a significant EPS miss at $1.05 [3][6] - The decline in Meta's stock was exacerbated by concerns over increased AI spending, leading to a substantial drop in market value by tens of billions [5][6] - Meta raised its 2025 capital expenditure guidance to between $70 billion and $72 billion, reflecting its commitment to AI [5]

This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Dive Brief: Google reaped the rewards of rising enterprise AI services demand during the third quarter, reaching $102 billion in revenues during the period ending Sept. 30, executives said during an earnings call Wednesday.  Cloud revenues soared in Q3 for the hyperscaler, growing 34% year over year to $15.2 billion. Google's cloud unit sustained profitability and brought ...