Alphabet Inc., the technology giant behind Google, delivered impressive third-quarter earnings results that surpassed analysts’ expectations. The company reported revenue of $88.27 billion, a 15% increase year-over-year, exceeding the Street consensus estimate of $86.31 billion. Earnings per share also came in strong at $2.12, beating the expected $1.84.
The growth was driven by robust performance across its core businesses. Google Search revenue reached $49.4 billion, up from $44 billion in the prior year. YouTube advertising generated $8.9 billion, a significant increase from $8 billion in the same period last year. Google Network revenue also saw growth, reaching $7.5 billion compared to $7.7 billion in the previous year. Overall, Google advertising revenue totaled $65.9 billion, a substantial jump from $59.6 billion in the third quarter of 2022.
Alphabet also highlighted the continued success of Google Cloud, which generated $11.4 billion in revenue, up from $8.45 billion in the previous year, representing a 35% year-over-year growth. This strong performance was attributed to the increasing adoption of AI-powered solutions.
CEO Sundar Pichai expressed his excitement about the company’s momentum, emphasizing the impact of AI advancements. “The momentum across the company is extraordinary,” Pichai said. “Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools.” He further explained how AI features are enhancing search experiences, attracting new customers and driving larger deals within the Google Cloud platform.
In a significant milestone, YouTube surpassed $50 billion in total ad and subscription revenue over the last four quarters, showcasing its growing popularity and revenue potential. Pichai expressed confidence in the company’s future, stating, “I’m looking forward to driving more advances for consumers, customers and creators globally.”
Following the release of these strong results, Alphabet’s Class C stock surged 3.38% in after-hours trading on Tuesday, closing at $176.93, showcasing investor optimism about the company’s continued growth trajectory.
