"The AI Overviews and AI Mode features have improved the overall search experience, leading to increased total and commercial queries. These AI experiences have also enhanced how customers connect with businesses and are influencing shopping behavior through Google Search. AI models are also helping businesses better understand purchasing intent, which is useful in building new consumer connections. All this is translating into higher consumer engagement and better monetization for Search."
"In the third quarter of fiscal 2025 (ending Sept. 30, 2025), the company's revenue soared 16% year over year to $102.3 billion, marking the first time it crossed the $100 billion quarterly revenue milestone. Search and Other advertising revenue grew by 15% year over year to $56 billion. Google Cloud has also become a crucial growth catalyst, with revenue surging 34% year over year to $15.2 billion. Google Cloud's backlog also rose 82% year over year to $155 billion, highlighting multiyear revenue visibility."
Wall Street shows strong positive ratings for Alphabet, with most analysts recommending buy or strong buy. AI features like AI Overviews and AI Mode have improved search relevance, increased total and commercial queries, enhanced customer-business connections, influenced shopping behavior, and helped advertisers assess purchasing intent, with ad placements in AI Overviews monetizing at similar rates to traditional search. Fiscal Q3 2025 revenue rose 16% to $102.3 billion, Search ad revenue reached $56 billion, and Google Cloud revenue surged 34% to $15.2 billion with an $155 billion backlog. Capital expenditures for fiscal 2025 are estimated at $91–$93 billion to support data center and server demand.
Read at The Motley Fool
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