Here's the real reason why Alphabet stock is soaring after earnings

Core Insights - Alphabet's Q3 2025 earnings surpassed Wall Street expectations, achieving a revenue of $102.4 billion, a 16% increase year over year, marking the company's first-ever $100 billion quarter [1][3] Revenue Breakdown - Google services, including Search, Android, YouTube, and Chrome, generated $87.1 billion, up 14.5% year over year, driven by strong ad demand and higher ad prices [2][6] - Google Cloud sales rose 34% to $15.2 billion, fueled by increased client training and the use of AI applications [2][6] Profitability Metrics - Alphabet's operating margin stood at 30.5%, with net income reaching nearly $35 billion, a 33% increase year over year [3] - Earnings per share (EPS) was $2.87, up 35%, exceeding analysts' expectations of $2.27 [3] Key Business Performance - Google Services contributed approximately $33.5 billion to operating profit, while Google Cloud's operating income surged 85% year over year to $3.6 billion [3] Market Sentiment and Future Outlook - Investors reacted positively to Alphabet's performance, indicating that demand for its services has not peaked and that management is executing effectively [5] - The Gemini app has over 650 million monthly active users, and Google Cloud ended the quarter with a backlog of $155 billion, suggesting strong future growth potential [7][8]