INTERNATIONAL: Alphabet Hits $100 Billion Revenue Milestone in Record Quarter
In a historic achievement, Alphabet, the parent company of Google, has reached an unprecedented $100 billion in revenue in a single quarter for the first time in its history.
This remarkable feat was made possible by robust growth across its core divisions, including search, cloud services, and YouTube, according to CEO Sundar Pichai.
Strong Q3 Performance Driven by AI
During the announcement of Alphabet’s third-quarter financial results for 2025, Sundar Pichai highlighted the company’s continued success in the digital landscape.
Pichai credited the substantial growth to strong double-digit performance across all key sectors, particularly in search, cloud, and YouTube.
He emphasized that artificial intelligence (AI) was a key driver behind the company’s growth.
“The Gemini app now has more than 650 million monthly active users, and the number of queries on the app has tripled compared to the previous quarter,” Pichai said.
AI-driven features, including AI Mode, have played a pivotal role in boosting Alphabet’s services and generating higher engagement.
Cloud Division and AI Subscriptions Lead the Charge
Alphabet’s cloud division also saw impressive growth, with cloud backlog increasing by 46% from the previous quarter, reaching $155 billion.
AI-driven revenue from cloud services has been a significant contributor to this growth.
Additionally, paid subscriptions for services like Google One and YouTube Premium surpassed 300 million, further solidifying the company’s position in the digital subscription market.
Pichai also pointed out the success of the ‘AI Mode,’ which is available in 40 languages worldwide and now boasts 75 million daily active users.
This feature, along with others powered by AI, has greatly contributed to the surge in search queries and overall user engagement.
Google’s Search and YouTube Continue to Grow
In terms of specific revenue streams, Google’s search services generated $87 billion in Q3, reflecting a 14% year-on-year growth.
Philip Schindler, Google’s Senior Vice President and Chief Business Officer, attributed the growth to increased revenue from search and YouTube advertising.
Search revenue alone grew by 15%, largely driven by sectors like retail and financial services.
YouTube also saw a significant boost, with advertising revenue increasing by 15%. Schindler noted that investments in AI-powered features, such as AI Overviews and AI Mode, have enhanced the platform’s commercial viability by providing advertisers with better tools to target their audiences and generate more revenue.
Conclusion: AI Powers Alphabet’s Future Growth
Alphabet’s Q3 financial results demonstrate the company’s strong position in the digital ecosystem.
With substantial revenue growth driven by AI innovations and strategic investments in its core services, the tech giant appears well-poised for continued success in the coming quarters.