Google parent Alphabet revenue jumps 15% on AI investments

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Google parent Alphabet topped third-quarter revenue expectations on Tuesday, helped by steady growth in its digital advertising business and an AI-driven jump in demand for its cloud services.

Shares of the company rose more than 3% in extended trading.

CEO Sundar Pichai said investments in AI were “paying off” through use and sales in its Search and Cloud businesses.

CEO Sundar Pichai said investments in AI were “paying off.” AFP via Getty Images

YouTube revenue surpassed $50 billion over the past four quarters, he said. Ad sales for the video streaming service rose 12% to $8.92 billion.

Digital advertising sales – the biggest chunk of Alphabet’s total revenue – rose to $65.85 billion from $59.65 billion.

Revenue from Google’s cloud platform grew to $11.35 billion, beating analysts’ estimate of $10.86 billion.

Alphabet reported a profit of $2.12 per share. Analysts were expecting per-share earnings of $1.85.

Revenue jumped 15% to $88.27 billion beating analysts’ estimates. AP

Revenue increased 15% to $88.27 billion in the July-September period, while analysts on average expected $86.30 billion, according to LSEG data.

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