Alphabet’s Third-Quarter Earnings Exceed Expectations
Google parent Alphabet has reported impressive third-quarter earnings, surpassing both top and bottom lines. The company’s shares rose by as much as 6% in after-hours trading.
Key Figures:
- Revenue growth: 15% year over year
- Cloud revenue: $11.35 billion, up 35% from the previous year
- Net income: $26.3 billion, or $2.12 per share
- Search business revenue: $49.4 billion, up 12.3% from the previous year
Driving Factors:
- Strong cloud results attributed to artificial intelligence offerings
- AI-powered products operating at scale, creating a “virtuous cycle”
- Search business remains the largest contributor to revenue growth
Future Plans:
- Building on existing cost-cutting efforts using AI
- Evaluating opportunities to accelerate work and free up capital
Other Notable Developments:
- YouTube ad revenue beats analysts’ expectations, showing better growth than last quarter
- Google Workspace sees strong growth during the third quarter
- Other Bets, including Verily and Waymo, report revenue of $388 million
Shake-Ups and Reorganizations:
- Prabhakar Raghavan replaced by Nick Fox as search and ads boss
- Gemini app team joins Google DeepMind under Demis Hassabis
AI Takes Center Stage:
- AI language model Gemini improves YouTube recommendations
- Google Lens used for over 20 billion visual searches per month
As Alphabet continues to focus on AI-powered growth, investors will be watching closely to see how the company’s reorganization efforts impact its segment operating results.
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