Usman Salis
● According to Fiscal.ai, Alphabet reached a major milestone—its first $100 billion quarter ever. That's double what they were making quarterly back in 2019. The company says this proves they're winning in the "generative AI era," with AI now driving revenue across Search, YouTube, Cloud, and Android.
● But there's a catch. Alphabet is pouring billions into AI research and infrastructure—$15.2 billion in R&D alone this quarter, which is 15% of total revenue. They're building data centers, training bigger models, and improving AI systems. While this positions them well long-term, it puts pressure on margins and could attract regulatory attention as they dominate AI search and cloud services.
● The numbers tell the story. App Economy Insights highlighted the Q3 2025 results: $102.3 billion in revenue (up 16% year-over-year), 31% operating margin, and $2.87 earnings per share—beating Wall Street's forecast by $0.61. Net margin hit 34%, generating $35 billion in profit despite rising costs from AI investments. YouTube ads brought in $10.3 billion, up 15%, showing strong advertiser demand even with tougher competition.
● Google Cloud is the real star here. The division delivered $15.2 billion in revenue (up 34% year-over-year) with operating margin reaching 24%—a 7-point jump from last year. The backlog exploded to $157.7 billion, over 12 times higher than 2019. Enterprise customers are lining up for AI infrastructure and data services.
Usman Salis
