Alphabet’s Q3 revenue surges to $102.35 billion as AI demand fuels growth across Google’s advertising and Cloud units

Core Insights - Alphabet Inc. reported stronger-than-expected third quarter results, driven by robust demand for AI services across its advertising and cloud businesses [1] - The company achieved total revenue of $102.35 billion, exceeding analysts' estimates of $99.89 billion, with a year-on-year revenue increase of 16% [1] - Profit for the quarter reached nearly $35 billion, or $2.87 per share, marking a 33% increase from the same period last year [2] Revenue Breakdown - Google Cloud revenue grew by 34% to $15.16 billion, surpassing estimates of $14.72 billion, fueled by enterprise demand for AI-driven infrastructure and data analytics [4] - Revenue from Google's core advertising business increased by 12.6% to $74.18 billion, exceeding the forecast of $71.79 billion, alleviating concerns about AI's impact on search dominance [6] Capital Expenditure and Investment - Alphabet raised its capital expenditure forecast for 2025 to $91–93 billion, up from $85 billion, primarily for expanding data centers to support AI operations [3] - This marks the third increase in spending outlook for 2025, following a reported $52.5 billion in 2024, highlighting the company's commitment to AI infrastructure [3] Strategic Direction - CEO Sundar Pichai emphasized the strong momentum driven by the company's AI strategy, noting double-digit growth across all major business segments and the rollout of AI-powered features in Google Search [7] - The workforce increased to approximately 190,000 employees, reflecting a growth of over 8,000 compared to the same period last year [8]