Alphabet’s third-quarter 2025 earnings of $2.87 per share beat estimates by 26.99% and increased 35.4% year over year. Revenues reached $102.35 billion, up 16% year over year. Google Services revenues rose 13.8% to $87.05 billion, while Google Cloud revenues surged 33.5% to $15.16 billion.

Google’s Services saw a 14.5% increase in revenues, while YouTube’s ad revenues improved by 15%. Google advertising revenues increased by 12.6%, but Google Network revenues decreased by 2.6%. Google Cloud ended the quarter with $155 billion in backlog and saw significant growth in AI-powered products.

Alphabet reported operating expenses of $71.12 billion in the third quarter, up 19% year over year. The operating margin was 30.5%, contracting by 180 bps. Google Cloud’s operating income was $3.59 billion, a significant increase from the previous year.

Alphabet’s cash, cash equivalents, and marketable securities reached $98.5 billion as of Sept. 30, 2025. The company generated $48.41 billion in cash from operations in the third quarter, with a free cash flow of $24.46 billion. Long-term debt was $21.61 billion.

Alphabet has raised its capital expenditure guidance for 2025 to between $91 billion and $93 billion, up from the previous estimate of $85 billion. The company expects significant growth in capital expenditure in 2026. Alphabet currently holds a Zacks Rank #3 (Hold).

Investors may consider stocks like Cirrus Logic, Fair Isaac, and CoreWeave in the Computer and Technology sector. Cirrus Logic is set to release second-quarter fiscal 2026 results, Fair Isaac will release fourth-quarter fiscal 2025 results, and CoreWeave will report third-quarter 2025 results.

Read more at Nasdaq: Alphabet’s Q3 Earnings Beat Estimates, Revenues Increase Y/Y