Alphabet revenue jumps 25% to USD 127.6 billion as Google Cloud growth doubles
California, October 29
Alphabet reported a 25 per cent year-on-year increase in revenue to USD 127.6 billion in the September quarter, driven by strong growth in Google Cloud and Search, as the technology major said its annual revenue run rate had reached half a trillion dollars.
The company recorded its 13th consecutive quarter of double-digit revenue growth, according to its earnings release. Operating income rose 30 per cent to USD 40.6 billion, while operating margin stood at 31.8 per cent.
However, net income available to common stockholders declined to USD 26.2 billion from USD 35 billion a year earlier, while diluted earnings per share fell to USD 2.12 from USD 2.87. The results were affected by a USD 8.7 billion loss on equity securities, which reduced net income by USD 6.7 billion, according to the company.
Google Cloud was the standout performer, with revenue more than doubling to USD 30.7 billion, up 103 per cent from a year earlier. Alphabet attributed the growth to demand for artificial intelligence infrastructure and solutions, core cloud services and sales of its tensor processing unit (TPU) systems.
Cloud operating income increased to USD 11.1 billion from USD 3.6 billion in the year-ago quarter, according to the release.
Google Services revenue rose 11 per cent to USD 96.3 billion, supported by a 12 per cent increase in Google Search and other revenue to USD 63.4 billion.
Chief Executive Officer Sundar Pichai said AI investments were driving overall Search query growth, including commercial queries, with the year-on-year growth rate reaching its highest level in five years.
"We had a strong quarter and are now on a half-trillion dollar revenue run rate," Pichai said, adding that the company's full-stack approach was driving momentum across its businesses.
He also said the Gemini app had reached one billion users, making it the fastest-growing product in Google's history.
"Overall, our first-party model APIs are now processing nearly 32 billion tokens per minute, more than four times what we processed a year ago," he added.
YouTube Music and Premium subscribers crossed 150 million globally, including trials.
Alphabet's Other Bets segment recorded revenue of USD 372 million, while its operating loss widened to USD 2 billion from USD 1.4 billion a year earlier.
— ANI
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