Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, reported better-than-expected third-quarter earnings on Tuesday, driven by strong performance in its cloud computing and digital advertising businesses.
The tech giant posted quarterly revenue of $88.27 billion, a 15% year-over-year increase, surpassing analysts' expectations of $86.31 billion. Earnings per share came in at $2.12, beating the consensus estimate of $1.84.
Google's cloud revenue surged 35% to $11.35 billion, bolstered by accelerated growth in artificial intelligence products and services. The company's CEO, Sundar Pichai, highlighted that AI solutions are driving deeper product adoption among existing customers, attracting new clients, and helping Google win larger deals.
The advertising business, which remains Alphabet's primary revenue driver, also delivered strong results. Total advertising revenue rose 10.4% to $65.85 billion, with YouTube ads contributing $8.92 billion, up 12% year-over-year. Pichai noted that YouTube's total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.
Alphabet's impressive performance comes despite facing regulatory challenges and growing competition in the internet search market. The company is currently grappling with an antitrust lawsuit from the U.S. Department of Justice, which alleges that Google has illegally maintained a search monopoly.
