Alphabet's historic $102.3 billion quarter marks a new era for Google under Sundar Pichai

What you need to know

• Alphabet reports first-ever $100 billion quarter with a 16% revenue increase.
• YouTube Ads and Google Search drove significant growth with 15% year-over-year gains.
• CEO Sundar Pichai highlights AI strategy supporting rapid expansion across various segments.

Alphabet, Google's parent company, had a record-breaking Q3 this year as the company reported its "first-ever $100 billion quarter." The company's Q3 earnings report revealed a 16% year-over-year revenue increase, reaching a total of $102.3 billion.

This significant growth in revenue was driven by all of Alphabet's segments, including YouTube Ads, Google Search, and the Platforms and Devices department. "We had a terrific quarter, with double-digit growth across every major part of our business," said Sundar Pichai, CEO of Alphabet and Google.

Furthermore, the report indicated that the company's operating income was $31.2 billion, which is a 9% YoY increase when compared to the same time in 2024. This figure includes the $3.5 billion European Commission fine.

Google Search, YouTube ads saw a 15% year-over-year increase, with the revenue totaling $56.57 billion ($49.3 billion in 2024) and $10.26 billion ($8.92 billion).

"In a world where AI-driven search volumes are steadily taking market share and reshaping Alphabet’s legacy business, this report makes it clear the company isn’t ready to give up its lead anytime soon," said Thomas Monteiro, senior analyst at Investing.com. in an email to Android Central.

The Google subscriptions, platforms, and devices segment, which includes Google One, YouTube Premium, and hardware sales, saw the fastest growth at approximately 21% year-over-year, bringing in $12.87 billion.

Speaking of AI, Pichai also noted that their AI-first strategy is pushing them in the right direction. "We’re shipping at speed, including the global rollout of AI Overviews and AI Mode in Search in record time." Additionally, he stated that Gemini App has over 650 million monthly active users, contributing to significant growth in new business ventures.

Looking ahead into Q4 2025

Alphabet will likely see the same revenue momentum in the fourth quarter as well, according to Anat Ashkenazi, chief financial officer of Alphabet and Google. During the earnings call, she noted that "Current exchange rates suggest a positive impact from foreign currency on Q4 revenues."

Alphabet's overall expenditure is expected to increase between $91 billion to 93 billion by the end of 2025, which is up from its previous estimate of $85 billion. "We're continuing to invest aggressively due to the demand we're experiencing from Cloud customers, as well as the growth opportunities we see across the company," Ashkenazi added.

Lastly, when asked about the advancements to Gemini, Pichai confirmed that Gemini 3.0, its new model, is expected to be released "later this year." He noted that he is incredibly impressed by the pace at which the teams are working to improve these AI models.