(Reuters) – Alphabet reported quarterly revenue above Wall Street expectations on Wednesday, driven by growth in its advertising revenue and cloud computing services.
The group’s revenue was $102.35 billion in the third quarter, compared with analysts’ average estimate of $99.89 billion, according to LSEG data.
Google Cloud remained one of Alphabet’s fastest-growing divisions, benefiting from strong enterprise demand for artificial intelligence (AI) and data analytics services.
The division’s revenue came in at $15.16 billion, compared to a consensus of $14.72 billion.
Competition in the broader AI and cloud market is intensifying, with companies in the sector aggressively lowering prices and introducing new generative AI capabilities.
Alphabet’s advertising arm, which accounts for the vast majority of the company’s revenue, operates in a saturated competitive industry, where each player competes to attract more advertising revenue.
Analysts have highlighted caution among advertisers in some sectors facing economic uncertainty due to pressure from tariffs and a changing global business environment.
Wall Street nevertheless expects the group to benefit from advertisers’ disinterest in experimental advertising platforms like Snapchat.
(Akash Sriram; Camille Raynaud)
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