Google’s parent company Alphabet earned a revenue of $102.3 billion in the third quarter of 2025, ending September 30, a 16% year-over-year (YoY) growth compared to the previous year. The net income (profit) stood at $34.9 billion, marking a 33% YoY increase from last year’s figure of $26.3 billion.
Alphabet incurred total expenses of $29.7 billion this quarter, which included $15.1 billion in research and development, $7.2 billion in sales and marketing, and $7.3 billion in general administrative costs. The company’s capital expenditure increased 84% YoY, reaching $23.9 billion this quarter.
Revenue Breakdown
Google Search brought in $56.5 billion in revenue this quarter, while YouTube ads generated $10.2 billion, both growing 15% YoY. The Google Network, which includes ads shown on third-party websites, earned $7.3 billion, a 3% YoY decline. In total, Google’s advertising revenue amounted to $74.1 billion.
The company also earned $12.8 billion from subscriptions, platforms, and devices, reflecting 21% YoY growth. Google Cloud brought in $15.1 billion, up 34% YoY, while Alphabet’s “Other Bets,” which includes autonomous transportation and healthcare-related services, generated $344 million in revenue.
Operating Income
The total operating income for Google Services was $33.5 billion, impacted by a $3.5 billion fine imposed by the European Commission in September for violations of EU antitrust laws.
Google Cloud reported a profit of $3.5 billion, while “Other Bets” incurred a loss of $1.4 billion. Alphabet-level activities, including employee severance and office space costs, further set the company back by $4.4 billion.
Google’s AI Initiatives:
Alphabet CEO Sundar Pichai stated that Google’s AI model Gemini now processes 7 billion tokens per minute via a direct API used by customers. “The Gemini app now has over 650 million monthly active users, and queries have increased by 3X from Q2,” he said. Across all surfaces, Alphabet now processes over 1.3 quadrillion monthly tokens—a more than 20-fold increase over the prior year.
AI Mode reached 75 million daily active users after rolling out globally across 40 languages, with usage doubling in the U.S. over the quarter. The feature has also driven incremental total query growth for Google Search.
Google reported that its investments in AI-driven search features like AI Overviews and AI Mode are boosting overall queries, including those with commercial intent, which creates more advertising opportunities. The company added shopping features to AI Mode, enabling conversational shopping and expanding virtual try-on capabilities to more clothing items for U.S. users. It also introduced personalized loyalty deals visible in both organic results and advertisements.
On the advertising front, Google launched AI Max in Search globally in September. The tool, already used by hundreds of thousands of advertisers, has become Google’s…
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