Alphabet reports 33% increase in net income to $34.9bn in Q3 2025

Core Insights - Alphabet reported a net income of $34.9 billion for Q3 2025, reflecting a 33% increase from $26.3 billion in the same period last year [1] - The company's earnings per share rose 35% to $2.87 [1] - Consolidated revenues for Q3 2025 reached $102.3 billion, marking a 16% year-over-year increase from $88.2 billion in Q3 2024 [1] Google Services Performance - Google Services generated $87.1 billion in revenue, up 14%, driven by Google Search, subscriptions, platforms, devices, and YouTube advertising [1] - Google Cloud revenue grew 34% to $15.2 billion, supported by demand for core products, AI infrastructure, and generative AI solutions [2] Operating Income and Margins - Total operating income increased by 9%, with an operating margin of 30.5% [2] - Excluding a $3.5 billion charge related to a European Commission fine, operating income rose 22%, and the operating margin improved to 33.9% [2] Other Income and Growth - Other income showed a net gain of $12.8 billion, primarily from unrealized gains on non-marketable equity securities [3] - Alphabet anticipates capital expenditures for 2025 to be between $91 billion and $93 billion, reflecting growth across its businesses [3] CEO Commentary - CEO Sundar Pichai highlighted the strong performance, noting double-digit growth across all major business segments and the achievement of the first-ever $100 billion quarter [4] AI and User Engagement - The Gemini App has over 650 million monthly active users, indicating strong growth in new business areas [6] - Google Cloud ended the quarter with a backlog of $155 billion and over 300 million paid subscriptions, led by Google One and YouTube Premium [6]