Alphabet/Google Revenues Jump 15 Percent to $88.3 Billion

Google’s parent company announced that it earned a net income of $26.3 billion on revenues of $88.3 billion in the quarter ending September 30. Those figures represent gains of 33.6 percent and 15 percent year-over-year (YOY), respectively, and Google easily beat all estimates for the quarter.

“The momentum across the company is extraordinary,” Alphabet and Google CEO Sundar Pichai said. “Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools. We generated strong revenue growth in the quarter, and our ongoing efforts to improve efficiency helped deliver improved margins. I’m looking forward to driving more advances for consumers, customers and creators globally.”

Google delivered strong revenue gains across the board.

Revenues from Google Search & Other were up 12.2 percent YOY to $49.4 billion. YouTube ad revenues hit $8.9 billion, up 16.3 percent, with Mr. Pichai noting that “YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.” Google Network added another $7.5 billion in revenues (down 1.6 percent), bringing the total revenues from advertising to $65.9 billion, up 10.4 percent YOY. So 66 percent of Alphabet’s total revenues came from advertising this past quarter.

Revenues from Google subscriptions, platforms, and devices jumped 28 percent to $10.7 billion. This is the part of the business responsible for Google One, Android, Pixel, and Nest. It’s unclear how each of those product lines performed in the quarter, but Mr. Pichai said Google has seen “strong demand” for the Pixel 9 series devices.

Google Cloud delivered $11.4 billion in revenue, up an incredible 35 percent YOY. The firm “credited accelerated growth in Google Cloud Platform (GCP) across AI Infrastructure, Generative AI Solutions, and core GCP products” for the gain. Finally, Alphabet’s Other Bets provided $388 million in revenues, up 31 percent YOY.