:max_bytes(150000):strip_icc()/GettyImages-2242649858-f887fa44b17941cf8dff27546a55cfef.jpg?resize=1068&w=1068&ssl=1 "Google Parent Alphabet Just Hit a Major Revenue Milestone. Its Stock is Jumping")
Key Takeaways
- Google parent Alphabet’s third-quarter results topped Wall Street estimates, with revenue surpassing the $100 billion mark for the first time.
- All of the company’s segments, including its search engine service. recorded revenue growth of at least 10% year-over-year.
- Search growth is important for Google, as some had said the company’s business could slow because of the popularity of ChatGPT and other chatbots.
Alphabet’s (GOOGL) third-quarter results topped analysts’ expectations, as the tech giant surpassed $100 billion in revenue for the first time.
The parent company of Google and YouTube late Wednesday reported earnings per share of $2.87, up from $2.12 the same time last year, while revenue came in at $102.3 billion, up 16% year-over-year, with each metric topping the analyst consensus compiled by Visible Alpha.
Revenue from its Google Cloud service was $15.16 billion, compared to $11.35 billion last year and better than the $14.77 billion analyst consensus. In its Search and Other segment, Alphabet topped estimates with $56.57 billion in revenue, up 14.5% year-over-year.
Why This Growth is Important For Alphabet
This was the first quarter in the company’s history where Alphabet topped $100 billion in revenue. Each of its segments grew their revenue by at least 10% from the same time a year ago, including Google Search, which some had feared would see growth slow because of the popularity of AI chatbots like ChatGPT.
Alphabet CEO Sundar Pichai said the company is “investing to meet customer demand and capitalize on the growing opportunities across the company.” Alphabet said it now expects capital expenditures for this year to be $91 billion to $93 billion, compared to the $85 billion estimate the company gave last quarter.
Last quarter, the tech giant lifted its capital expenditures forecast to $85 billion from $75 billion previously, due to its plans to expand its data center construction and spending on things like servers for its artificial intelligence infrastructure.
Alphabet’s Class A shares were up more than 5% in recent after-hours trading. Through the close of Wednesday’s regular trading session, the stock has gained 45% since the start of 2025.
