Alphabet Announces Third Quarter 2025 Results [pdf] (s206.q4cdn.com)

Alphabet reported a strong Q3 2025: revenue rose 16% year-over-year to $102.3 billion — its first-ever $100B quarter — with Google Services up 14% ($87.1B) and Google Cloud growing 34% to $15.2B. Net income climbed 33% to $35.0B and diluted EPS was $2.87. Operating income improved despite a one-time $3.5B European Commission fine (excluding that charge, operating margin was 33.9%). Other income included a $12.8B net unrealized gain on non-marketable equity securities. Alphabet guided 2025 capital expenditures sharply higher ($91–93B), reflecting heavy investment in data centers and AI infrastructure, and employee headcount rose to 190,167. For the AI/ML community the release underscores both product traction and infrastructure scale. Alphabet highlighted rapid rollouts of AI Overviews and AI Mode in Search, and said its first-party models (Gemini) now process 7 billion tokens per minute via customer API usage; the Gemini App has over 650 million monthly active users. Google Cloud cited growth across core products, AI Infrastructure and Generative AI Solutions and ended the quarter with $155B in backlog — signaling robust enterprise demand for cloud AI services and capacity. The combination of massive token throughput, large MAU, elevated capex, and enterprise backlog signals continued investment in model serving, inference/accelerator capacity, and tooling that will shape competition and procurement in AI infrastructure and services.