Alphabet tops hopes and delivers first ever $100 billion quarter

Alphabet Inc on Wednesday hailed a "terrific quarter" with sales beating expectations driven by a strong performance at Google's cloud business.

The Mountain View, California-based technology conglomerate which owns Google said net income rose to USD34.98 billion in the three months to September from USD26.30 billion the year prior.

Diluted earnings per share increased to USD2.87 from USD2.12.

Revenue increased 18% to USD102.35 billion from USD88.27 billion the year prior, topping USD100 billion for the first time in a quarter, and beating FactSet consensus of USD99.69 billion.

Alphabet said Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each delivered double-digit growth in the quarter.

Google Services revenue increased 14% to USD87.1 billion, reflecting robust performance across Google Search & other, Google subscriptions, platforms, and devices, and YouTube ads.

Google Cloud revenues increased 34% to USD15.2 billion, led by growth in Google Cloud Platform across core products, AI Infrastructure and Generative AI Solutions.

"Alphabet had a terrific quarter, with double-digit growth across every major part of our business. We delivered our first-ever USD100 billion quarter," said Sundar Pichai, chief executive of Alphabet and Google.

"Our full stack approach to AI is delivering strong momentum and we're shipping at speed, including the global rollout of AI Overviews and AI Mode in Search in record time," he added.

"We are investing to meet customer demand and capitalize on the growing opportunities across the company," he continued.

With the growth across the business and demand from Cloud customers, Alphabet said it now expects 2025 capital expenditures to be in a range of USD91 billion to USD93 billion.