Alphabet Surpasses Q3 Revenue Forecasts Driven by Strong Advertising and Cloud Growth

Mumbai, October 30, 2025: Google parent Alphabet has posted stronger-than-expected results for the third quarter. The results have exceeded the revenue forecasts previously given by analysts. It reported its first-ever $100 billion revenue in any quarter, with advertising and cloud growth leading the exceptional performance.

Key Details About Alphabet Financial Results

In its financial results, Alphabet reported a rise in its revenue by 16% year-on-year to $102.3 billion in the third quarter. Its net income increased by 33% to $35 billion. CEO Sundar Pichai said, “Alphabet had a terrific quarter, with double-digit growth across every major part of our business,”.

Google’s core search and advertising business was the main contributor to the growth. It contributed $56.6 billion, up from $49.4 billion a year earlier. The advertising revenue of YouTube increased from $8.9 billion in the same quarter last year to $10.3 billion in the third quarter of 2025.

Google’s Cloud revenue increased 34% to $15.2 billion. Sundar Pichai credited Google’s “ambitious approach to offering AI” for this growth. The company also reported that its paid subscriptions across YouTube Premium and Google One have exceeded 300 million.

$3.5 Billion Fine: A Negative Factor

Although financial results were strong, a negative factor was a $3.5 billion fine imposed on Google by the European Commission in September. The fine was imposed for breaching rules for ad tech competition in the EU by Google. If not for the fine, the company’s operating income would have seen a rise of 22%, compared with the reported 9% rise.

Capital Expenditure of $91-93 Billion Expected

Alphabet announced that it expects its capital expenditure to be between $91 billion-93 billion in 2025. The increased expenditure is due to its ongoing process of expanding data centers and increasing its computing power to support its AI growth. Sundar Pichai said that the expenditures will continue in the next year as the company will meet its infrastructure demand.

Overnight, Alphabet’s stock closed higher by 2.65%, or 7.10 points, at $274.57. It has surged by 40% this year despite direct competition from AI platforms like ChatGPT, Microsoft, and Perplexity.

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