Google’s parent company, Alphabet Inc., smashed Wall Street expectations for the third quarter, reporting 15% revenue growth and a 34% surge in net income.
According to data by Bloomberg, the results were much better than analysts had expected.
Revenue rose to $88.3 billion, beating expectations of $86.4 billion.
Net income totaled $26.3 billion, surpassing what analysts had expected by over $3 billion.
Commenting on the company’s performance, Alphabet CEO Sundar Pichai said: “The momentum across the company is extraordinary.”
The California-based tech giant’s advertising revenue rose to $65.85 billion in the quarter, up from $59.65 billion in the same period last year.
YouTube ad revenue increased by 12% to $8.9 billion, while Google Search revenue grew by 12% to $49.4 billion.
Cloud revenue rose by 35% year-over-year to $11.4 billion.
“In Search, our new AI features are expanding what people can search for and how they search for it. In Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers and win larger deals. And YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time,” said Pichai.
The results show that Alphabet maintains a solid position in digital advertising thanks to its robust Search and YouTube platforms. But the real gem in the report was the sheer growth of its cloud segment. The company has successfully attracted customers to its suite of cloud of services by expanding its AI infrastructure and solutions.
“We generated strong revenue growth in the quarter, and our ongoing efforts to improve efficiency helped deliver improved margins. I’m looking forward to driving more advances for consumers, customers and creators globally,” added Pichai.
Alphabet is the first of several tech giants reporting Q3 earnings this week. Meta, Amazon, Microsoft, and Apple will also announce their quarterly performance.