"The company reported total revenue of $102.35 billion for the quarter, compared with analysts' average estimate of $99.89 billion, according to data compiled by LSEG. The cloud services and AI giant raised its capital expenditure forecast for the year to between $91 billion and $93 billion, compared with the estimates of $80.67 billion. Google Cloud remained one of Alphabet's fastest-growing segments, benefiting from surging enterprise demand for AI-powered infrastructure and data analytics services."
"The unit posted revenue of $15.16 billion, topping estimates of $14.72 billion. The performance was likely boosted by burgeoning enterprise demand for its AI infrastructure. The unit continues to close the gap with larger rivals Microsoft Azure and Amazon Web Services, aided by strong take-up of Vertex AI and custom Tensor Processing Units. Competition in the broader AI and cloud market is intensifying, with rivals aggressively cutting prices and introducing new generative AI capabilities."
"Alphabet's advertising unit, which brings in the vast majority of the company's revenue, has been competing in a crowded field of rivals vying for more ad dollars as lower interest rates are expected to lift the economy. However, analysts have pointed to cautious spending from advertisers in some sectors grappling with economic uncertainty due to pressures from tariff costs and a rapidly evolving global trading landscape."
Alphabet reported third-quarter revenue of $102.35 billion, above analysts' $99.89 billion estimate, and shares rose 6% in after-hours trading. The company raised its full-year capital expenditure forecast to $91–$93 billion. Google Cloud posted $15.16 billion in revenue, exceeding expectations, driven by enterprise demand for AI infrastructure, Vertex AI adoption, and custom TPUs, narrowing the gap with Azure and AWS. The broader AI and cloud market is becoming more competitive with price cuts and new generative AI features. The advertising business remains the primary revenue source amid some sector-specific advertiser caution from tariff and trade pressures.
Read at Fast Company
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