Daijiworld Media Network – California
California, Oct 30: Google parent company Alphabet Inc. has achieved a historic milestone, reporting over $100 billion in quarterly revenue for the first time in its history. The record-breaking performance for the July–September quarter was driven by strong momentum in its search, YouTube, and cloud divisions, each boosted by the company’s rapid integration of artificial intelligence (AI).
According to Alphabet’s quarterly report, revenue surged 16% year-on-year to $102.3 billion, surpassing Wall Street expectations. Net income soared 33% to $35 billion, underscoring the tech giant’s growing dominance in the AI era.
“Alphabet had a terrific quarter, with double-digit growth across every major part of our business,” said CEO Sundar Pichai in a statement. “Our ambitious approach to AI is delivering strong momentum, and we’re shipping at speed.”
The company’s core search and advertising division remained its largest revenue source, bringing in $56.6 billion, up from $49.4 billion last year. YouTube ads also delivered a strong performance, climbing to $10.3 billion from $8.9 billion a year earlier.
However, it was Google Cloud that emerged as the biggest growth driver, recording a 34% rise in revenue to $15.2 billion. Competing with Amazon Web Services and Microsoft Azure, Google Cloud has become one of Alphabet’s fastest-growing businesses.
Alphabet credited its AI-driven innovations, including its Gemini AI models and Gemini App, which now boasts over 650 million monthly users, for much of its success. A growing share of Google searches now utilize “AI Mode,” reflecting the company’s transition into an AI-first ecosystem.
The strong results came despite a $3.5 billion fine from the European Commission over alleged antitrust violations in its advertising technology division. Excluding the penalty, Alphabet said its operating income would have risen 22%, instead of the reported 9%.
Alphabet also revealed plans to ramp up capital expenditure to $91–93 billion in 2025, primarily to expand data centers and computing capacity needed for AI infrastructure.
Meanwhile, its “Other Bets” segment — which includes Waymo, the autonomous vehicle division — reported a $1.4 billion loss on revenues of just $344 million, underscoring the experimental unit’s ongoing challenges.
Alphabet’s shares have jumped nearly 40% this year, buoyed by its AI-driven growth and a recent legal victory after a U.S. judge rejected the government’s demand to divest its Chrome browser in an antitrust case.
As Alphabet continues to invest heavily in AI and cloud technologies, its record-setting quarter cements its position among the world’s most powerful tech companies — and signals that the AI revolution is reshaping not just Google’s products, but its entire financial future.