Alphabet Inc., the parent company of Google, has achieved a historic milestone by surpassing $100 billion in quarterly revenue for the first time. In its third-quarter report for 2025, Alphabet posted revenue of $102.3 billion, marking a 16% year-over-year increase and doubling from $50 billion five years ago. The results exceeded Wall Street expectations of $99.89 billion, while net income surged 33% to nearly $35 billion. This achievement underscores the company’s growing dominance in the artificial intelligence (AI) sector, particularly through its Google Cloud division.
Google Cloud and AI Drive Alphabet’s Record Growth and Market Expansion
Alphabet’s growth was largely fuelled by Google Cloud, which drives the company’s AI services. The cloud division reported a 34% increase in revenue to $15.2 billion, with CEO Sundar Pichai revealing that it ended the quarter with a $155 billion backlog, up 46% from the previous quarter. Pichai emphasized that nearly 70% of Google Cloud’s customers use its AI products, citing enterprise clients such as Best Buy. He also noted that Alphabet signed more billion-dollar enterprise cloud deals in the first nine months of 2025 than in the previous two years combined, illustrating strong demand for AI infrastructure.
The company’s performance reflects AI’s transition from an experimental phase to a major source of revenue. Pichai highlighted that “AI is now driving real business results across the company,” noting double-digit growth across all major divisions. Alphabet’s Google Gemini AI app has also grown rapidly, now boasting 650 million monthly active users, up from 450 million last quarter, though still behind OpenAI’s ChatGPT with 800 million weekly users.
Alphabet Posts Strong Profits and Investor Confidence Amid Heavy AI Investments
Beyond cloud and AI, Google Search revenue rose 15% to $56.6 billion, while YouTube ads grew 15% to $10.3 billion, showcasing broad-based business momentum. Alphabet’s operating margin stood at a healthy 30.5%, even as the company ramps up capital spending to $91–93 billion on data centers and AI chips.
Alphabet’s stock rose 5% following the announcement and is up over 50% year-to-date, reinforcing investor confidence as the company continues to rival major players like Microsoft and Amazon in the AI-powered tech race.
Summary:
Alphabet Inc. achieved a record $102.3 billion in quarterly revenue, driven by strong AI and Google Cloud growth. Cloud revenue rose 34% to $15.2 billion, while Search and YouTube ads grew 15%. With rising profits, major AI investments, and strong investor confidence, Alphabet continues to rival Microsoft and Amazon.
