Google parent Alphabet topped third-quarter revenue expectations on Tuesday, helped by continued growth in its digital advertising business and an AI-driven surge in demand for its cloud services.
The company’s shares rose more than 3% in extended trading.
CEO Sundar Pichai said investments in AI are “paying off” through use and sales in its search and cloud businesses.
YouTube’s revenue has exceeded $50 billion in the last four quarters, he said. The video streaming service’s advertising sales rose 12% to $8.92 billion.
Digital advertising sales – the largest share of Alphabet’s total revenue – rose from $59.65 billion to $65.85 billion.
Revenue from Google’s cloud platform rose to $11.35 billion, beating analysts’ estimates of $10.86 billion.
Alphabet reported profit of $2.12 per share. Analysts had expected earnings of $1.85 per share.
Revenue rose 15% to $88.27 billion in the July-September period, while analysts on average were expecting $86.30 billion, according to LSEG data.
