Alphabet Reports Record Breaking 102 Billion Revenue Q3 2025

Alphabet Inc achieved a historic milestone by surpassing 100 billion dollars in quarterly revenue for the first time in company history during the third quarter of 2025. The tech giant reported total consolidated revenues of 102.3 billion dollars for the quarter ending September 30, 2025, representing a 16 percent increase compared to the same period in 2024.

The strong financial performance was driven by broad-based growth across all major business segments. Google Search and other services generated 56.6 billion dollars, while YouTube advertising revenue reached 10.3 billion dollars during the quarter. The company’s subscription services, platforms and devices business contributed 12.9 billion dollars to the overall revenue figure.

Google Cloud emerged as one of the fastest-growing segments with revenues climbing 34 percent year over year to reach 15.2 billion dollars. The cloud division’s expansion was fueled by increased adoption of Google Cloud Platform services, AI infrastructure offerings and generative AI solutions. Operating income from Google Cloud more than doubled to 3.6 billion dollars compared to 1.9 billion dollars in the third quarter of 2024.

The company’s net income for the quarter reached 34.9 billion dollars, marking a 33 percent increase from the prior year period. Diluted earnings per share rose to 2.87 dollars, up 35 percent year over year. The strong bottom line performance was partially attributed to a net gain of 12.8 billion dollars in other income, primarily from unrealized gains on non-marketable equity securities.

Operating income increased 9 percent to 31.2 billion dollars, though operating margin decreased slightly to 30.5 percent. However, when excluding a 3.5 billion dollar fine imposed by the European Commission for competition law violations, operating income increased 22 percent with an operating margin of 33.9 percent. The fine was recorded in general and administrative expenses within the Google Services segment.

Alphabet’s artificial intelligence initiatives showed significant momentum during the quarter. The Gemini application now serves over 650 million monthly active users, while the company’s first-party AI models process 7 billion tokens per minute through direct API usage by customers. Google Cloud’s order backlog reached 155 billion dollars, reflecting strong customer demand for cloud and AI services.

The company’s subscription business continued expanding with more than 300 million paid subscriptions across products including Google One and YouTube Premium. Google Services revenues totaled 87.1 billion dollars, growing 14 percent year over year and demonstrating robust performance across search, subscriptions and YouTube advertising.

Alphabet’s capital expenditure plans were revised upward during the quarter. The company now expects total capital expenditures for 2025 to range between 91 billion and 93 billion dollars, reflecting increased investment to meet customer demand and capitalize on growth opportunities, particularly in cloud infrastructure and AI capabilities.

The company’s workforce expanded to 190,167 employees as of September 30, 2025, an increase from 181,269 employees during the same period last year. Total traffic acquisition costs rose to 14.9 billion dollars from 13.7 billion dollars year over year.

Alphabet’s Board of Directors declared a quarterly cash dividend of 0.21 dollars per share payable on December 15, 2025 to stockholders of record as of December 8, 2025. This dividend applies to all Class A, Class B and Class C shares.

The company’s balance sheet remained strong with total cash, cash equivalents and marketable securities reaching 98.5 billion dollars as of September 30, 2025. Total assets increased to 536.5 billion dollars from 450.3 billion dollars at the end of 2024, while stockholders’ equity grew to 386.9 billion dollars.

Free cash flow for the quarter amounted to 24.5 billion dollars, calculated as net cash provided by operating activities of 48.4 billion dollars minus capital expenditures of 23.9 billion dollars. For the trailing twelve months, free cash flow totaled 73.5 billion dollars.

The Other Bets segment, which includes various experimental businesses such as autonomous transportation and healthcare services, generated 344 million dollars in revenue but recorded an operating loss of 1.4 billion dollars during the quarter.