Alphabet Q3 posts blockbuster quarter as Google Cloud profit and Gemini AI drive revenue growth. Firms cite rising enterprise AI demand, $155 billion in contracts and stronger ad sales. Read market reaction and analyst takeaways.
Alphabet Q3 Earnings Beat Signals Confidence in Long-Term AI Strategy
Alphabet Q3 reported a landmark quarter as Google Cloud and its Gemini AI lineup emerged as the clearest drivers of growth, signalling that enterprise demand for AI is translating into tangible revenue. Cloud delivered robust profits and rising contract backlog, while Gemini-powered products broadened Alphabet’s enterprise reach.
The cloud unit generated unusually strong operating income, with reports noting a profit that beat analyst estimates and underscoring a shift from loss-making toward sustained profitability in the division. Executives highlighted a large pipeline of unfulfilled contracts — reported at roughly $155 billion — that gives visibility to future cloud and AI services revenue.
Analysts pointed to a mix of better ad-sales performance, higher cloud spending by businesses adopting AI infrastructure, and Alphabet’s investments in custom chips and data-centre capacity as the factors underpinning the results. Market reaction was positive as investors priced in stronger growth outlook and higher capital expenditure for AI support.
