Alphabet, the parent company of Google and YouTube, announced a net income of $73.582 billion from January to October, a 38% year-over-year increase. This growth is primarily due to its advertising business and the growing cloud service. The company recorded a revenue of $253.549 billion in the first nine months of the year, representing a 15% increase compared to the previous year.
In the third quarter, Alphabet exceeded expectations with earnings of $26.301 billion, a 33% increase compared to the previous year. Revenues reached $88.268 billion, a 15% increase, mainly driven by Google and YouTube, as well as Google Cloud. Google Services, which includes the search engine and YouTube, generated $76.500 billion in revenue, primarily from advertising, a 13% year-over-year increase.
On the other hand, Google Cloud recorded revenues of $11.400 billion with a 35% increase, driven by advances in Artificial Intelligence that enhance the cloud platform and business products. The company’s CEO, Sundar Pichai, expressed his commitment to long-term innovation in Artificial Intelligence, highlighting the benefits this technology brings to consumers and partners.
Additionally, Pichai emphasized that YouTube's subscription and advertising revenues surpassed $50 billion for four consecutive quarters for the first time. The restructuring of parts of the business in recent months was also mentioned, with Alphabet assessing its potential impact on results, including the incorporation of developers from its AI model Gemini into the Google Deepmind segment.
Following the release of quarterly results, Alphabet’s shares experienced a 4% increase in after-hours trading on Wall Street. The company has seen a 21% growth in its value since the beginning of the year, reaching $2.06 trillion.
