Alphabet reported third-quarter earnings that beat analyst expectations. Shares rose 5% in after-hours trading.
Here's how the company did, compared with estimates from analysts polled by LSEG:
Revenue: $102.35 billion vs. $99.89 billion estimated
$102.35 billion vs. $99.89 billion estimated Earnings per share: $3.10 adj. vs $2.33 estimated
Wall Street was also watching several other numbers in the report:
YouTube advertising revenue : $10.26 billion vs. $10.01 billion, according to StreetAccount
: $10.26 billion vs. $10.01 billion, according to StreetAccount Google Cloud revenue: $15.15 billion vs. $14.74 billion, according to StreetAccount
$15.15 billion vs. $14.74 billion, according to StreetAccount Traffic acquisition costs (TAC): $14.87 billion vs. $14.82 billion, according to StreetAccount
Alphabet reported solid momentum in its cloud business, thanks to strong demand for artificial intelligence. The company also announced an increase in expected capital expenditures for the fiscal year 2025.
"With the growth across our business and demand from Cloud customers, we now expect 2025 capital expenditures to be in a range of $91 billion to $93 billion," the company said in its earnings report Wednesday.
"Looking out to 2026, we expect a significant increase in CapEx and will provide more detail on our fourth quarter earnings call," said finance chief Anat Ashkenazi on the earnings call with investors Wednesday.
Earlier this year, the company increased its capital expenditure expectation from $75 billion to $85 billion. Most of that goes toward technical infrastructure such as data centers.
The latest earnings show the company is seeing rising demand for its AI services, which largely sit in its cloud unit. It also shows the company is continuing to spend more to try and build out more infrastructure to accomodate the backlog of customer requests.
"We continue to drive strong growth in new businesses. Google Cloud accelerated, ending the quarter with $155 billion in backlog," CEO Sundar Pichai said in the earnings release.
The backlog comes from demand for enterprise AI infrastructure, including chips and demand for Gemini 2.5, said Ashkenazi.