Alphabet Reports Record $102 Billion Q3 Revenue Driven by AI Cloud Growth

Alphabet Inc. reported a historic $102.3 billion revenue in Q3 2025, marking its first-ever $100 billion quarter with a 16% increase year-over-year. This growth was driven largely by AI initiatives and strong performance in core platforms such as Google Cloud, which showed a 46% quarter-over-quarter backlog increase and signed more billion-dollar deals than the previous two years combined, and YouTube, with advertising revenues rising 15% to $10.3 billion. CEO Sundar Pichai highlighted double-digit growth across all major business segments and emphasized investments in AI infrastructure, including chips like NVIDIA GPUs and Google’s TPUs, to sustain competitive advantage. Despite this success, Alphabet faced challenges including a $3.5 billion European Commission fine and a decline in network advertising revenues, impacting operating margins. The company also continues to expand its subscription services, now boasting over 300 million paid subscriptions, and maintains a robust financial position with strong profitability metrics such as a 35.06% return on equity. Overall, analysts remain optimistic about Alphabet’s strategic positioning, especially with upcoming AI product launches like Gemini 3, which could further enhance growth prospects.