Alphabet Inc. (GOOG) Achieves Record $100B+ Quarter
Earnings Release Date: October 29, 2025
Key Points
- Revenue: $102.35B, up 16% YoY (15% in constant currency).
- GAAP EPS: $2.87 (vs $2.12), up 35% YoY.
- Net Income: $34.98B (vs $26.3B), up 33% YoY.
- Operating Income: $31.2B; operating margin 30.5%.
- Non-GAAP Operating Margin: 33.9% (excl. $3.5B EC fine).
- Free Cash Flow (Q3): $24.46B.
- Google Cloud Revenue: $15.16B, up 34% YoY.
- Google Services Revenue: $87.05B, up 14% YoY.
- YouTube Ads: $10.26B (up from $8.92B).
- Dividend: Declared $0.21/share payable December 15, 2025.
Quarter Highlights
- Broad-based strength: All major segments—Search, YouTube, Subscriptions, Cloud—saw double-digit growth.
- Google Cloud: Delivered 34% revenue growth with growing AI infrastructure and a $155B backlog.
- Advertising: Search & Other up 14.5%, YouTube up 15%, Network slightly down.
- AI Platform Momentum: Gemini models now process 7 billion tokens/min; 650M MAUs for Gemini App.
- Subscription Base: Surpassed 300 million paid subscribers, led by YouTube Premium and Google One.
Financial Summary
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Revenue | $102.35B | $88.27B | +16% |
| Operating Income | $31.23B | $28.52B | +9% (GAAP) |
| Non-GAAP Operating Income | $34.69B | $28.52B | +22% |
| Operating Margin | 30.5% | 32.3% | –180 bps |
| EPS (Diluted) | $2.87 | $2.12 | +35% |
| Net Income | $34.98B | $26.3B | +33% |
| Free Cash Flow | $24.46B | $24.84B | ≈Flat |
| Google Cloud Revenue | $15.16B | $11.35B | +34% |
| YouTube Ads | $10.26B | $8.92B | +15% |
Capital Return
- Stock Buybacks: $11.5B during the quarter.
- Dividend: $0.21/share declared for Class A, B, and C shares.
- CapEx: Raised FY25 estimate to $91–$93B, reflecting AI/Cloud investments.
About Alphabet
Alphabet Inc. (NASDAQ: GOOG, GOOGL) is the parent company of Google, focused on products and platforms that span Search, YouTube, Android, Chrome, Maps, Cloud, and AI infrastructure. Through its Google Services and Google Cloud segments, Alphabet drives global innovation in AI, advertising, devices, and enterprise tech, serving billions of users and millions of businesses.
Key Takeaways
- Historic milestone: First-ever $100B+ quarter for Alphabet, driven by AI, Cloud, and YouTube.
- Google Cloud: Momentum accelerated with 34% YoY growth and rising backlog.
- AI execution: Gemini, AI Overviews, and Search enhancements driving user and enterprise adoption.
- Margin dynamics: Operating leverage preserved despite a $3.5B EC fine.
- Capital return: $11.5B buybacks + dividend, while continuing aggressive CapEx for AI.
- Overall: Alphabet’s diversified model delivered high-margin, multi-segment growth at scale.