Alphabet Surges on Q3 Earnings Beat: ETFs to Watch

Core Insights - Alphabet reported better-than-expected third-quarter earnings with earnings per share of $2.87, surpassing the Zacks Consensus Estimate of $2.26 by 26.99% and showing a 35.38% improvement from $2.12 in the same period last year [1][2] Financial Performance - The company posted revenues of $87.47 billion for Q3 2025, exceeding the Zacks Consensus Estimate of $84.96 billion by 2.95%, marking a 17.33% increase from the previous year [4] - Net income surged by 32.99% year-over-year to $34.98 billion, while operating income increased by 9.49% to $31.23 billion [4] - Excluding a $3.5 billion EC fine, operating income jumped 22%, with margins expanding to 33.9% [5] Segment Performance - Google advertising revenues reached $74.18 billion, up 12.65% from the previous year, with YouTube ad revenues at $10.26 billion, reflecting a 15.02% increase [6] - Google Cloud business saw operating income rise to $3.59 billion, an 84.59% increase from $1.95 billion a year ago, with revenues growing 32.98% year-over-year to $15.16 billion [7] - Revenues from Google Services increased by 13.78% to $87.05 billion, with double-digit growth across Google Search & Other, YouTube ads, Google Cloud, and subscriptions [8] Stock Outlook - Alphabet has an average brokerage recommendation (ABR) of 1.40, indicating a strong buy sentiment, with 75.44% of recommendations classified as Strong Buy and 8.77% as Buy [9][10]