Alphabet, Google's parent company, released its Q3 2025 financial results today, showing revenue exceeding $100 billion for the first time, reaching $102.346 billion (approximately RMB 709.864 billion), a 16% year-over-year increase. Net profit surged 33% year-over-year to $34.979 billion, both exceeding Wall Street expectations. Despite the company announcing an increase in capital expenditures for the next fiscal year to $91 billion to $93 billion, primarily for AI data center construction, its stock price rose in after-hours trading.
In its core businesses, Google Cloud continued its strong growth momentum, with revenue reaching $15.16 billion, exceeding analysts' expectations of $14.72 billion. Demand from enterprise customers for the Vertex AI platform and customized TPUs is driving the division to gradually close the gap with Microsoft Azure and Amazon AWS. Advertising remains the company's main revenue contributor, with total Google Ads revenue reaching $74.18 billion, including $10.26 billion from YouTube ads and $56.57 billion from search. Analysts point out that Alphabet is expected to further benefit from improved macroeconomic expectations and the return of advertisers from emerging platforms.
It's worth noting that Alphabet's full-year capital expenditure guidance significantly increased from its initial forecast, highlighting its long-term investment in AI infrastructure. However, competition in the cloud computing market is intensifying, with rivals vying for market share through price reductions and generative AI features, while some advertisers remain cautious due to trade uncertainties. Overall, Alphabet continues to solidify its market position amidst the AI wave, leveraging its technological advantages and economies of scale.
