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Alphabet Tops $100 Billion in Quarterly Sales as AI Lifts Search and Cloud

AI-driven Cloud momentum prompts a sharp capex buildout.

Overview

  • Alphabet delivered $102.3 billion in Q3 2025 revenue, up 16% year over year, marking its first quarter above $100 billion and beating Wall Street estimates.
  • Google Cloud revenue rose 34% to $15.2 billion, supported by a roughly $155 billion backlog that enhances near-term visibility.
  • The company lifted its 2025 capital spending plan to $91–$93 billion after investing $23.9 billion in Q3 to scale data centers, TPUs, and AI capacity.
  • AI Overviews and AI Mode are driving search query growth as Gemini reaches about 650 million monthly active users, while advertising still accounts for roughly 73% of revenue.
  • Waymo plans new robotaxi launches in Dallas, Nashville, Denver, and Seattle with expansion to Tokyo and London, as analysts raise price targets such as Evercore ISI’s move to $325.