Alphabet posts first $100 billion quarter as ads and cloud lift revenue 16%

New Delhi: Alphabet Inc., the parent of Google, reported revenue of $102.3 billion for the quarter, its first-ever three-month period above $100 billion, up 16% year-on-year on strength in advertising, cloud and AI-led products.

Chief Executive Sundar Pichai said growth was broad-based and credited the company’s full-stack approach to AI. “This was a terrific quarter for Alphabet, driven by double-digit growth across every major part of our business. We’re seeing AI now driving real business results across the company. We delivered our first-ever $100 billion quarter,” he told investors.

Google Services, which houses the core ads businesses, delivered $87.1 billion in revenue, up 14%. Within this, revenue from Google Search and other properties was $56.6 billion, while YouTube advertising rose to $10.3 billion, taking the video platform past the $10 billion mark for the quarter. Subscriptions, Platforms and Devices, including Pixel hardware and Google One, contributed $12.9 billion.

Google Cloud remained the standout, with revenue rising 34% to $15.2 billion. Pichai said customer demand is accelerating, citing larger deals and deeper adoption of AI offerings such as Gemini Enterprise. He added that Alphabet has signed more $1-billion-plus deals through the third quarter this year than in the previous two years combined, and that the cloud backlog stands at $155 billion.

Other Bets, which includes ventures such as Waymo, reported $344 million in revenue.

Operating income was $31.2 billion, up 9% year-on-year, or 22% excluding a $3.5 billion European Commission fine. Net income was $35.0 billion, translating into diluted earnings per share of $2.87, a 35% increase.

Alphabet said it will continue to invest in AI infrastructure and products across Search, YouTube and Cloud, while expanding automation and generative AI features for consumers and enterprises. Pichai said the company enters the next phase of the AI cycle with strong momentum across businesses.