Alphabet, Google’s parent company, exceeded Wall Street’s revenue expectations with its third-quarter financial results, demonstrating significant growth across its primary businesses. The company announced a 15% increase in consolidated revenue, reaching $88 billion, and a 34% growth in net income, amounting to $26 billion compared to the same period last year.
Google Search remained the primary source of revenue, generating $49.3 billion, marking a 12% rise from the previous year. Meanwhile, YouTube’s revenue climbed to $8.9 billion, a 12% increase, and Google Cloud saw a revenue boost to $11.3 billion, up 34%. Traffic acquisition costs (TAC) were reported at $13.7 billion, a rise of nearly 9%, while earnings per share increased to $2.12.
These results surpassed the projections of financial analysts, with revenues and EPS exceeding expectations, and TAC slightly lower than predicted, which pleased investors. Consequently, Alphabet’s stock rose nearly 4.8% to $179.40 during after-hours trading.
CEO Sundar Pichai commented that the company’s sustained focus and investment in artificial intelligence (AI) are beginning to yield benefits for both enterprise clients and general consumers. Pichai noted that new AI features in Search are broadening the scope of user capabilities and search methods. In the Cloud sector, AI solutions are fostering greater product adoption among existing clients, attracting new customers, and leading to larger deals. Meanwhile, YouTube’s total revenue from ads and subscriptions exceeded $50 billion over the past four quarters, marking a record achievement.