Alphabet Reports Q3 Earnings Exceeding Expectations, Year-over-Year Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
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Source: NASDAQ.COM
Earnings Performance: Alphabet's Q3 2025 earnings of $2.87 per share exceeded estimates by 26.99%, with revenues of $102.35 billion reflecting a 16% year-over-year increase. Google Services and Google Cloud revenues also showed significant growth, surpassing consensus estimates.
Advertising and AI Growth: Google advertising revenues rose 12.6% to $74.18 billion, driven by innovations in AI, including AI Overviews and AI Mode, which enhanced search capabilities and advertiser engagement. YouTube's ad revenues improved by 15%, supported by a growing number of paid subscriptions.
Cloud and Generative AI Expansion: Google Cloud revenues surged 33.5% year-over-year, with a notable increase in customers utilizing AI products. Revenues from generative AI models grew over 200% year-over-year, indicating strong adoption across various applications.
Financial Overview: Alphabet's operating expenses increased by 19%, leading to a contraction in operating margin to 30.5%. The company generated $48.41 billion in cash from operations and plans to increase capital expenditures significantly in 2026.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 338.660
Low
255.00
Averages
336.08
High
400.00
Current: 338.660
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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