Google stock soared on Tuesday after its parent company, Alphabet Inc., reported strong third-quarter (Q3) earnings that easily beat Wall Street estimates. The company’s impressive performance across its advertising, cloud, and AI segments sent GOOG and GOOGL stock prices sharply higher in after-hours trading, according to a report from Yahoo Finance.
Alphabet’s Earnings Outperform Forecasts
Alphabet reported revenue of $89.2 billion, up 13% year-over-year, surpassing analysts’ expectations of around $87.9 billion. Net income came in at $25.1 billion, or $2.11 per share, compared with $1.55 per share in the same quarter last year.
The strong results were primarily driven by Google Search and YouTube ads, which continued to rebound amid higher advertiser spending, as well as solid growth in Google Cloud, Alphabet’s rapidly expanding enterprise business.
“This quarter’s results reflect the strength of our AI-powered products and continued advertiser demand,” said Alphabet CFO Ruth Porat. “We’re investing responsibly while driving long-term profitability.”
Following the report, Google stock price jumped more than 6% in extended trading, signaling investor optimism about Alphabet’s growth strategy.
Advertising and Cloud Drive Growth
Alphabet’s advertising division remains its financial engine. Google Ads revenue climbed to $63.5 billion, up 11% from the previous year, while YouTube ad sales hit $9.1 billion, exceeding expectations.
Meanwhile, Google Cloud brought in $10.4 billion in revenue, marking a 25% increase year-over-year. The company’s AI integration into its cloud services has been a major selling point for enterprise clients, competing directly with Microsoft Azure and Amazon Web Services (AWS).
Chief Executive Sundar Pichai noted that AI continues to be central to Google’s long-term vision.
“We’re seeing strong customer adoption of our AI-driven solutions across search, productivity tools, and cloud infrastructure,” Pichai said.
AI Momentum and Future Outlook
Analysts say Alphabet’s recent AI advancements, including its Gemini model and deeper integration of generative AI into Google Workspace and Search, are paying off. These innovations have helped the company stay ahead of rivals such as OpenAI and Meta in the race for AI-driven user experiences.
The company also emphasized its commitment to cost efficiency, even as it continues to invest in next-generation computing and AI research.
Investors and analysts alike have become increasingly bullish. Several major firms, including Morgan Stanley and JP Morgan, raised their price targets for GOOGL stock, citing Alphabet’s “balanced growth and operational discipline.”
Alphabet Stock Price Outlook
With this earnings beat, Alphabet’s market capitalization has moved closer to the $2.7 trillion mark. GOOG stock was trading around $170 post-earnings, its highest level in 2025 so far.
Market analysts predict continued upside potential for Google stock, especially as the company leverages AI across its products and expands its cloud and advertising ecosystems.
However, some caution that regulatory scrutiny and increased competition from Microsoft and Amazon could pose challenges in the coming quarters.
Bottom Line
Alphabet’s stellar Q3 earnings reaffirm its leadership in both digital advertising and artificial intelligence. The company’s combination of steady ad revenue, cloud expansion, and AI innovation has made Google stock one of the most closely watched assets in global markets.
If the company maintains its current trajectory, analysts believe that GOOGL could continue outperforming broader tech indices into 2026.
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