Alphabet Surpasses Q3 Earnings Expectations Driven by AI and Cloud Growth

Alphabet Inc. reported a 4% stock surge following stronger-than-expected Q3 earnings, fueled by robust demand for AI partnerships and cloud services. Revenue hit $102.4 billion, eclipsing the $99.85 billion analyst consensus and marking a significant jump from $88.3 billion year-over-year. Adjusted earnings per share reached $2.87, well above the projected $2.26.

Google Cloud emerged as a standout performer, delivering $15.2 billion in revenue—a sharp increase from $11.3 billion in the prior-year period. The division exceeded forecasts by $400 million, with a $155 billion backlog underscoring sustained enterprise demand. CEO Sundar Pichai highlighted 'double-digit growth across every major part of our business,' including Alphabet's first $100 billion quarter.

Capital expenditures are now projected at $92 billion, up from $85 billion, as the company accelerates AI product deployment. While the report focuses on traditional markets, the infrastructure scaling for AI and cloud computing could indirectly benefit blockchain networks requiring high-performance data solutions.