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Sep 30, 2025
Alphabet Q3 2025 Earnings Report
Alphabet posted record quarterly revenue and strong profit growth despite an EC fine, with double-digit gains across Search, YouTube, Subscriptions/Devices, and Google Cloud.
Key Takeaways
Revenue rose 16% to $102.346B and diluted EPS increased 35% to $2.87, while operating income reached $31.228B (30.5% margin); Google Services delivered $87.052B and Google Cloud grew to $15.157B with a 23.7% operating margin.
Total revenue reached $102.346B (+16% YoY) and net income was $34.979B (+33% YoY).
Google Cloud revenue climbed to $15.157B with operating margin of 23.7%.
Google Services revenue was $87.052B; Search, YouTube, and Subscriptions all grew double digits.
Quarterly free cash flow was $24.461B; capex was $23.953B.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Management now expects 2025 capital expenditures of $91–$93B and highlighted strong AI and Cloud demand drivers, including growing Gemini adoption and a $155B Cloud backlog.
Positive Outlook
- Raised capex outlook reflects sustained AI infrastructure demand.
- Cloud momentum with $155B backlog and 34% revenue growth.
- Gemini adoption and capabilities cited as business drivers (7B tokens/min, 650M MAUs).
- Double-digit growth across Search, YouTube, and Subscriptions/Devices.
- Google Cloud operating margin expanded to 23.7%, indicating improving efficiency.
Challenges Ahead
- EC fine of $3.5B weighed on GAAP operating margin in the quarter.
- Hedging losses of $207M reduced reported revenue contribution.
- Google Network ads declined 3% year over year.
- Operating margin fell to 30.5% from 32.3% a year ago.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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