Alphabet Inc. delivered a historic performance in the third quarter of 2025, surpassing the $100 billion revenue milestone for the first time in its history.
The tech giant reported total revenue of $102.3 billion, a 16% year-over-year increase, as demand for artificial intelligence services and cloud computing powered growth across all major divisions.
The results highlight Alphabet’s transformation into an AI-driven technology ecosystem, with every core business line posting double-digit gains. Google Search and YouTube continued to deliver strong advertising results, while Google Cloud posted standout growth amid global enterprise adoption of generative AI tools.
AI Expansion and Cloud Strength Push Profits Higher
Net income climbed 33% to $34.98 billion, with earnings per share rising 35% to $2.87. Operating income increased 9% to $31.2 billion, or 22% when excluding the $3.5 billion fine imposed by the European Commission for competition violations. Alphabet’s operating margin stood at 30.5%, expanding to 33.9% on an adjusted basis.
Google Cloud revenue surged 34% to $15.2 billion, driven by growing adoption of Google Cloud Platform’s AI infrastructure and enterprise-grade AI solutions. The segment now holds a backlog of $155 billion, reflecting strong long-term demand from businesses transitioning to AI-powered operations.
CEO Pichai Highlights AI Integration Across the Ecosystem
“Alphabet had a terrific quarter, with double-digit growth across every major part of our business,” said CEO Sundar Pichai. “Our full-stack AI approach is delivering momentum. Gemini models now process over 7 billion tokens per minute, and our new AI Mode in Search has rolled out globally in record time.”
The Gemini app, Alphabet’s flagship AI platform, has surpassed 650 million monthly active users, underscoring the company’s growing foothold in consumer AI. Across its ecosystem, Alphabet reported more than 300 million paid subscriptions, led by Google One and YouTube Premium.
Advertising and Subscriptions Fuel Google Services
Alphabet’s core Google Services segment generated $87.1 billion in revenue, up 14% from a year earlier, reflecting solid results in Search, YouTube ads, and Google’s expanding suite of subscription offerings. YouTube advertising climbed to $10.26 billion, while Google Search revenue reached $56.57 billion.
Meanwhile, subscriptions, platforms, and devices contributed $12.87 billion, an area that continues to grow as Alphabet diversifies its revenue mix beyond ads.
Dividend and Capital Spending Outlook
Alphabet’s Board of Directors declared a quarterly cash dividend of $0.21 per share, payable on December 15, 2025. The company also raised its full-year capital expenditure outlook to between $91 billion and $93 billion, reflecting investments in data centers, AI infrastructure, and cloud capacity.
Regulatory Headwinds and Investment Gains
The strong quarter was partially offset by a $3.5 billion fine from the European Commission over competition law violations. Despite this charge, Alphabet posted $12.8 billion in other income, largely from unrealized gains on non-marketable equity investments, benefiting from market valuations of tech holdings.
Steady Hiring and Global Expansion
Alphabet’s workforce expanded to 190,167 employees, up from 181,269 a year earlier. Regional growth remained balanced, with the U.S. accounting for nearly half of total revenue, while Europe, the Middle East, and Africa (EMEA) contributed $29.9 billion. Asia-Pacific revenue rose 22% to $17.8 billion, underscoring continued international momentum.
The AI Era Defines Alphabet’s Future
The third quarter reaffirmed Alphabet’s strategic pivot toward AI as the foundation of its next growth cycle. With rapid expansion in Gemini’s user base and Google Cloud’s accelerating enterprise demand, the company is positioning itself as a central force in global AI infrastructure.
Alphabet’s record-breaking results mark not just a financial milestone but a clear signal that its bet on artificial intelligence is reshaping its entire business model.
