Alphabet (GOOGL) GOOGL Q3 Financial Results Summary

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Alphabet Inc. (GOOG, GOOGL) Q3 2025 Financial Results Summary

Alphabet Inc. (NASDAQ: GOOG, GOOGL) released its financial results for the third quarter of 2025 on October 29, 2025.

Summary of Financial Results

  • Total Revenues
  • Consolidated revenues for Q3 2025 increased 16% year-over-year to $102.3 billion.

  • In constant currency terms, revenues rose 15%.

  • Google Services

  • Revenues from Google Services increased by 14% to $87.1 billion.

  • This growth was driven primarily by strong performance in:

    • Google Search & other
    • YouTube ads
    • Google subscriptions, platforms, and devices

  • Google Cloud

  • Google Cloud revenues surged by 34% to $15.2 billion.

  • Major contributors to this growth included:

    • Google Cloud Platform (GCP) services
    • AI Infrastructure and Generative AI Solutions

  • Operating Income

  • Total operating income rose by 9%, with an operating margin of 30.5%.

  • Excluding a $3.5 billion charge related to the European Commission fine, operating income improved by 22%, leading to a non-GAAP operating margin of 33.9%.

  • Other Income

  • Other income for the quarter was a net gain of $12.8 billion, largely attributed to unrealized gains on non-marketable equity securities.

  • Net Income and Earnings Per Share (EPS)

  • Net income increased by 33% to $34.979 billion.

  • Diluted EPS rose by 35% to $2.87.

  • Capital Expenditures

  • For 2025, anticipated capital expenditures are expected to be between $91 billion and $93 billion.

Breakdown of Financial Metrics vs. Previous Year (Q3 2024)

  • Revenues
  • Q3 2024: $88.3 billion
  • Q3 2025: $102.3 billion

  • Year-over-year change: 16%

  • Operating Income

  • Q3 2024: $28.5 billion
  • Q3 2025: $31.2 billion
  • Year-over-year change: 9%
  • Operating margin (GAAP):
    • Q3 2024: 32%
    • Q3 2025: 30.5%

  • Operating income (excluding EC fine):

    • Q3 2024: $28.5 billion
    • Q3 2025: $34.7 billion
    • Year-over-year change: 22%

  • Net Income

  • Q3 2024: $26.3 billion
  • Q3 2025: $34.979 billion

  • Year-over-year change: 33%

  • Diluted EPS

  • Q3 2024: $2.12
  • Q3 2025: $2.87

  • Year-over-year change: 35%

  • Additional Insights

  • Number of Employees: Increased from 181,269 in Q3 2024 to 190,167 in Q3 2025.

Dividend and Share Repurchase

  • Alphabet’s Board of Directors declared a quarterly cash dividend of $0.21 payable on December 15, 2025, to stockholders of record on December 8, 2025, across all Class A, Class B, and Class C shares.
  • No specific share repurchase details were mentioned in the report; however, it noted previous repurchase activities.

Conclusion

Alphabet Inc. showcased significant growth across various segments, particularly in Google Cloud and overall digital services, contributing to noteworthy increases in both revenue and profit metrics. The company demonstrated resilience and robust performance against the challenges of regulatory fines and operational complexities, reaffirming its strong market position.

Here are the extracted tables from the press release:

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share amounts, unaudited)

Quarter Ended September Year To Date September
2024 2025 2024 2025
Revenues $88,268 $102,346 $253,549 $289,007
Costs and expenses:
Cost of revenues 36,474 41,369 105,693 116,768
Research and development 12,447 15,151 36,210 42,515
Sales and marketing 7,227 7,205 20,445 20,478
General and administrative 3,599 7,393 9,783 16,141
Total costs and expenses 59,747 71,118 172,131 195,902
Income from operations 28,521 31,228 81,418 93,105
Other income (expense), net 3,185 12,759 6,154 26,604
Income before income taxes 31,706 43,987 87,572 119,709
Provision for income taxes 5,405 9,008 13,990 21,994
Net income $26,301 $34,979 $73,582 $97,715
Basic net income per share $2.14 $2.89 $5.96 $8.06
Diluted net income per share $2.12 $2.87 $5.90 $7.99
Number of shares used in basic earnings per share calculation 12,290 12,086 12,349 12,130
Number of shares used in diluted earnings per share calculation 12,419 12,203 12,480 12,230

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value per share amounts)

As of December 31, 2024 As of September 30, 2025
Assets
Current assets:
Cash and cash equivalents $23,466 $23,090
Marketable securities 72,191 75,406
Total cash, cash equivalents, and marketable securities 95,657 98,496
Accounts receivable, net 52,340 57,148
Other current assets 15,714 18,303
Total current assets 163,711 173,947
Non-marketable securities 37,982 63,800
Deferred income taxes 17,180 10,331
Property and equipment, net 171,036 223,787
Operating lease assets 13,588 14,524
Goodwill 31,885 33,269
Other non-current assets 14,874 16,811
Total assets $450,256 $536,469
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $7,987 $10,546
Accrued compensation and benefits 15,069 13,944
Accrued expenses and other current liabilities 51,228 59,437
Accrued revenue share 9,802 10,081
Deferred revenue 5,036 5,542
Total current liabilities 89,122 99,550
Long-term debt 10,883 21,607
Income taxes payable, non-current 8,782 10,072
Operating lease liabilities 11,691 12,106
Other long-term liabilities 4,694 6,267
Total liabilities 125,172 149,602
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 100 shares authorized; no shares issued and outstanding 0 0
Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share: 300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,211 (Class A 5,835, Class B 861, Class C 5,515) and 12,077 (Class A 5,818, Class B 842, Class C 5,417) shares issued and outstanding 84,800 91,695
Accumulated other comprehensive income (loss) -4,800 -2,054
Retained earnings 245,084 297,226
Total stockholders’ equity 325,084 386,867
Total liabilities and stockholders’ equity $450,256 $536,469

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