Alphabet's AI-Driven Growth Surpasses Expectations in Q3

Alphabet exceeded third-quarter revenue forecasts, driven by growth in digital advertising and cloud services fueled by AI. CEO Sundar Pichai highlighted the positive impact of AI investments. Digital ad sales and cloud revenue saw significant increases, leading to shares rising over 3% in extended trading.

Alphabet has surpassed third-quarter revenue expectations, bolstered by continued growth in its digital advertising division and a substantial AI-driven surge in demand for its cloud services. As a result, the company's shares rose more than 3% in extended trading.

CEO Sundar Pichai stated that the company's investments in artificial intelligence are yielding positive results through augmented use and sales in both its Search and Cloud sectors. He noted that YouTube's revenue reached over $50 billion in the past year, with advertising sales for the platform climbing 12% to $8.92 billion.

The most significant portion of Alphabet's revenue, digital advertising, rose to $65.85 billion from $59.65 billion. Meanwhile, Google's cloud platform revenue jumped to $11.35 billion, surpassing analysts' predictions of $10.86 billion. Overall, Alphabet reported a profit of $2.12 per share, outperforming the analysts' forecast of $1.85. Revenue rose 15% to $88.27 billion during July-September, above the average analyst forecast of $86.30 billion, according to LSEG data.

(With inputs from agencies.)