Alphabet generated 100 billion dollars in revenue in the third quarter.

Alphabet Achieves $100 Billion Revenue in Third Quarter

Alphabet has crossed a significant milestone in the tech world, with its third-quarter revenue exceeding $100 billion for the first time, reaching $102.35 billion. This impressive revenue increase positively impacted the company’s stock prices, aligning with analysts' expectations.

Record Profitability

The company recorded a net profit of $34.97 billion in this quarter, showing a significant increase compared to the same period last year. The adjusted earnings per share came in at $3.10, exceeding the $2.33 analyst expectations.

Competitive Fines and Their Effects

However, alongside this success, Alphabet faced a $3.45 billion antitrust fine from the European Union. This fine is among the factors negatively impacting its net income. The company plans to conduct a detailed assessment of how this fine affected market performance.

Cloud Services and Artificial Intelligence

Alphabet’s Google Cloud services outperformed expectations with revenues of $15.15 billion. The company reported significant momentum in its cloud business due to increasing demand for artificial intelligence. CFO Anat Ashkenazi announced that capital expenditures are expected to rise from $91 billion to $93 billion for the fiscal year 2025.

Tools and Smart Applications

CEO Sundar Pichai stated that the Google Cloud division closed the quarter with a backlog of $155 billion in workloads, and 70% of existing customers are actively using AI products. This is seen as a success for the company’s strategy to upsell to its current customer base.

Other Units and Overall Assessment

In other key areas, such as life sciences and autonomous vehicles represented by Verily and Waymo, the company generated $344 million in revenue during the quarter. This amount was $388 million last year and is recorded as a trend to be monitored.

In summary, while Alphabet has achieved significant financial success in the third quarter, it will need to address the competitive challenges it faces.