Google's parent company Alphabet has crossed a historic milestone, reporting its first-ever quarterly revenue of $102.35 billion in Q3 2025, exceeding Wall Street estimates of $99.89 billion by nearly $2.5 billion.
The achievement comes as a testament to CEO Sundar Pichai's strategic emphasis on artificial intelligence, marking a significant moment in the tech giant's two-decade journey. Five years ago, Alphabet's quarterly revenue stood at just $50 billion, showcasing remarkable growth trajectory.
The record quarter reflects Alphabet's successful full-stack AI approach. Google's search advertising revenue reached $56.57 billion, surpassing analyst expectations of $55.05 billion. Notably, the company's AI Overviews feature, launched in record time, now operates across 40 languages and attracts 75 million daily users, driving what Pichai describes as an "expansionary moment for Search".
Google Cloud emerged as the earnings standout, generating $15.15 billion in revenue—a 35% year-over-year increase—substantially exceeding projections of $14.72 billion. The division secured more $1 billion-plus deals in Q3 2025 than in the previous two years combined, with a remarkable $155 billion order backlog. Additionally, over 70% of existing Google Cloud customers now utilize AI products.
YouTube advertising maintained strong performance at $10.26 billion, beating the expected $10 billion, while Shorts now generates higher revenue per watch hour than traditional in-stream videos.
The momentum extends beyond financials. Google has mobilized over 13 million developers around its generative AI models, with Gemini 2.5 Pro, Veo, and the upcoming Gemini 3—scheduled for December 2025 launch—leading innovation. Alphabet's stock surged 6% in after-hours trading, reflecting investor confidence in its AI-centric growth strategy.
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