Alphabet Q3 Earnings Surpass Estimates, Stock Jumps 6%

Alphabet Inc. delivered a robust third-quarter performance, with earnings per share reaching $2.87, significantly exceeding Wall Street's $2.26 estimate. Revenue climbed to $102.3 billion, outpacing the anticipated $99.9 billion, marking a 16% year-over-year growth.

Google Cloud emerged as a standout, posting a 34% revenue increase to $15.2 billion. Artificial intelligence played a pivotal role, generating billions in revenue and driving a surge in high-value contracts. The segment secured more $1 billion deals this quarter than in the previous two years combined.

The company has raised its 2025 capital expenditure guidance to $92 billion, up from $85 billion, signaling aggressive investment in AI infrastructure. Operating margins remained strong at 30.5%, or 33.9% when excluding a one-time $3.5 billion European Commission fine.

Investors responded enthusiastically, sending Alphabet shares up 6% in after-hours trading. The results underscore the tech giant's dominant position in both traditional digital advertising and emerging AI-driven markets.