Google’s parent company Alphabet (GOOG, GOOGL) released third-quarter financial results after the bell on Tuesday, with revenue and bottom line profits exceeding analyst expectations as the cloud business continues to expand, and the big tech company’s earnings. We got off to a good start.
The search giant reported earnings per share of $2.12 on revenue of $88.27 billion. Analysts had expected earnings of $1.83 per share and revenue of $86.44 billion, according to data compiled by Bloomberg.
Advertising revenue exceeded $65.85 billion, compared to analysts’ expectations of $65.5 billion, and was up from $59.65 billion a year earlier.
Here’s what Alphabet Inc. reported on some of its most important metrics for its fiscal third quarter, according to Bloomberg data:
Revenue: $88.27 vs. $86.44 billion expected ($76.69 billion in Q3 2023)
Adjusted earnings per share: $2.12 vs. $1.83 expected ($1.55 in Q3 2023)
Cloud revenue: $11.35 billion vs. $10.79 billion expected ($8.41 billion in Q3 2023)
Advertising revenue: $65.85 vs. $65.5 billion expected ($59.65 billion in Q3 2023)
Alphabet’s stock rose more than 3% in after-hours trading Tuesday.
The jump in cloud revenue comes as rivals Microsoft (MSFT) and Amazon (AMZN) are also expected to grow their cloud businesses and step up investments in AI infrastructure. Google also faces competition on its home turf with the introduction of increasingly sophisticated AI-powered chatbots. On Monday, The Information reported that META is developing its own search engine to power its Meta AI chatbot, which provides conversational answers to users’ questions and prompts.
How the next generation answer engine will compete with Google’s traditional search and AI-powered search remains a key question for the company.
Google is the first Big Tech platform to report this week, with Meta and Microsoft set to report quarterly results on Wednesday, followed by Amazon (AMZN) and Apple (AAPL). While all mega-cap stocks have posted gains so far this year, the two companies are on divergent paths as investors no longer measure AI spending and business success in tandem. .
Hamza Shaban is a reporter for Yahoo Finance, covering markets and economics. X Follow Hamza at @hshaban.
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