Google parent Alphabet (GOOGL) on Wednesday delivered third-quarter earnings and revenue that handily beat consensus estimates while internet search advertising and cloud computing revenue came in above expectations. Google stock popped on the news.
Reported after the market close, Google earnings for the quarter ending Sept. 30 rose 35% to $2.87 per share. The tech giant reports Google earnings under generally accepted accounting principles, also known as GAAP.
In Q3, Google’s gross revenue rose 16% to $102.35 billion. Analysts polled by FactSet had projected EPS of $2.26 on revenue of $99.94 billion.
Google Earnings: Search Results
Also, Google’s Q3 internet search-advertising revenue rose over 14% to $56.57 billion versus estimates of $55.05 billion.
Further, Google reported cloud-computing revenue climbed 33.5% to $15.16 billion versus estimates of $14.70 billion.
Meanwhile, YouTube ad revenue rose 15% to $10.26 billion versus estimates of $10 billion.
“All key revenue lines (total advertising, search, YouTube Ads, cloud) reported accelerating growth – a very impressive accomplishment,” said Evercore ISI analyst Mark Mahaney in a report.
Google increased its 2025 capital spending estimate to $92 billion at the midpoint, up from prior guidance of $85 billion and $75 billion. Most capital spending goes toward artificial intelligence cloud infrastructure.
On the stock market today, Google stock gained over 5% to 288.40 in extended trading. Heading into the Google earnings report, shares had advanced over 43% in 2025, rebounding from a rough start.
OpenAI Competition
Potential disruption of Google’s core internet search business amid the emergence of generative artificial intelligence and new rivals such as OpenAI remains an issue for Google stock.
OpenAI recently unveiled an AI-powered web browser called ChatGPT Atlas and is expected to add advertising.
Google began deploying AI Overviews in the U.S. in mid-2024, with conversational summaries topping links for many search queries. The long-range question is how Google search ad revenue growth will be impacted by the AI Overviews format.
Google is among AI stocks to watch.
In September, a federal judge ruled that no Google asset divestitures will be required as part of remedies in an antitrust case involving the tech giant’s internet search business.
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GOOGL Stock Technical Ratings
Also, Google stock owns an Accumulation/Distribution Rating of B-plus. The institutional ownership rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Further, Alphabet stock holds an IBD Composite Rating of 98 out of a best possible 99, according to IBD Stock Checkup.
IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, quantum computing, cybersecurity and cloud computing.
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