Overview
- Alphabet reported $102.3 billion in Q3 revenue as AI-enhanced Search and a 33% jump in Google Cloud to about $15.2 billion helped deliver its first $100 billion quarter.
- Google Cloud’s contracted backlog reached roughly $155 billion, with executives saying AI generated billions of dollars in quarterly cloud revenue and more billion‑dollar deals than the prior two years combined.
- Alphabet lifted 2025 capital spending guidance to $91–$93 billion and signaled a significant increase in 2026; Q3 capex totaled $24 billion with about 60% on servers.
- Investor reaction split: Alphabet shares rose roughly 4%–6% after the beat and higher capex, while Meta fell about 8%–10% as it raised 2025 capex to $70–$72 billion and warned of faster growth in 2026 alongside a large one‑time tax charge.
- Microsoft logged $34.9 billion in quarterly capex tied largely to AI infrastructure and said spending will increase sequentially with a higher growth rate expected in fiscal 2026, reinforcing the sector’s rapid buildout.