Alphabet Beats Expectations with Google Cloud Growth

Alphabet announced its third-quarter financial results, surpassing market expectations on both revenue and profit. The company's total revenue reached $88.3 billion, a 15% increase compared to the same period last year, while earnings per share came in at $2.12. These figures exceeded analysts' average estimates. The Google Cloud segment played a key role in the company's growth. Cloud computing revenue rose 35% year-over-year to $11.4 billion. This strong performance was supported by increasing demand for artificial intelligence and cloud services. Alphabet CEO Sundar Pichai stated that AI investments are accelerating the cloud business and boosting customer acquisition. Advertising revenues also exceeded expectations, reaching $65.9 billion. YouTube advertising revenue increased 12% to $8.9 billion, while Google Search revenue grew 12% to $49.4 billion. Among other revenue items, the Google Subscriptions, Platforms, and Devices segment generated $10.7 billion, up 28%. Alphabet's operating profit margin rose to 32% from 28% in the same period last year. Despite increased costs from investments in AI infrastructure, the company maintained profitability through efficiency improvements. Management announced that they will continue to focus on cloud and AI areas in the coming period. This is not investment advice.