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Sep 30
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.
Alphabet
Alphabet
Alphabet Revenue by Segment
Alphabet Revenue by Geographic Location
Revenue by Segment
Google Services Revenue
CapyFin.comGoogle Cloud Revenue
CapyFin.comOther Bets Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPAC Revenue
CapyFin.comOther Americas Revenue
CapyFin.com 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.
- Elevated capital intensity continues with $23.953B Q3 capex and a higher full-year outlook.