Alphabet revenue rises 25% but misses; YouTube ads and net profit fall short

· Tech · United States

Alphabet reported third-quarter revenue of $127.6 billion, up 25% year over year but below analyst expectations, while net profit fell nearly a quarter to $26.2 billion, well short of estimates. Cloud sales surged and operating profit rose. CEO Sundar Pichai credited AI investments for year-over-year growth in overall search queries, including commercial queries, and Google said it would expand AI Search ads globally as core ad growth slows. YouTube ad revenue missed expectations as its growth decelerated, though the number of music and premium subscribers crossed 150 million. Separately, Alphabet disclosed it sold $12.4 billion of stock in the quarter through its at-the-market program, issuing 12 million class A and 24 million class C shares.

Why it matters：The results test whether AI-driven search engagement is translating into ad dollars, a question that shapes spending plans across digital advertising and cloud infrastructure.

Key points

  • Cloud sales surged while revenue growth of 25% still fell short of estimates.
  • YouTube ad revenue missed as subscriber numbers passed 150 million.
  • Alphabet raised $12.4 billion through its at-the-market share program.

Sources (original reporting)

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