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FY2025 Q3
Improving
Alphabet Inc. earnings call
Buzzberg read
Cloud backlog surged 46% QoQ to $155B, with record billion-dollar deals.
Alphabet delivered a record $102.3B quarter with double-digit growth across segments, driven by AI expansion in search, cloud, and YouTube. Management raised 2025 capex to $91-93B, cited persistent cloud supply tightness, and highlighted large commitments from customers like Anthropic (1M TPUs). First $100B+ quarter with 16% YoY revenue growth; cloud revenue grew 34% to $15.2B
Buzzberg read Cloud backlog surged 46% QoQ to $155B, with record billion-dollar deals. Alphabet delivered a record $102.3B quarter with double-digit growth across segments, driven by AI expansion in search, cloud, and YouTube. Management raised 2025 capex to $91-93B, cited persistent cloud supply tightness, and highlighted large commitments from customers like Anthropic (1M TPUs). First $100B+ quarter with 16% YoY revenue growth; cloud revenue grew 34% to $15.2B Read full analysisCollapse analysis
Alphabet delivered a record $102.3B quarter with double-digit growth across segments, driven by AI expansion in search, cloud, and YouTube. Management raised 2025 capex to $91-93B, cited persistent cloud supply tightness, and highlighted large commitments from customers like Anthropic (1M TPUs). First $100B+ quarter with 16% YoY revenue growth; cloud revenue grew 34% to $15.2B
- 2025 capex raised to $91-93B from $85B; tight cloud supply environment expected through 2026
- AI Mode in search doubled queries in Q3; AI overviews now serving 2B+ users with comparable monetization
- Cloud backlog surged 46% QoQ to $155B; more $1B+ deals signed in 9 months than prior two years combined
CLOUD Revenue$15.2BReported
Revenue$102.346BReported
EPS$2.87Reported
Gross margin59.58%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Capex
2025 CapEx raised to $91-93B; 2026 to see significant increase.
AI
AI Mode drives incremental Search query growth; now 75M DAU.
Show 3 more callouts
AI
Gemini processes 1.3 quadrillion monthly tokens, 20x growth YoY.
Margins
Cloud operating margin expanded to 23.7%, up from 17.1%.
Monetization
AI Max monetizes billions of new queries; fastest-growing Search ads product.
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| CLOUD Revenue | $15.2B | Reported |
| Revenue | $102.346B | Reported |
| EPS | $2.87 | Reported |
| Gross margin | 59.58% | Reported |
| Operating margin | 30.51% | Reported |
| Free cash flow | $24.461B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2025 | $91B–$93B | $92B | Raised |
AI, capex & demand read
Management read
Upbeat
Management expressed strong confidence, highlighted milestone achievements (first $100B quarter, accelerated Cloud growth, record backlog), and reiterated expansionary AI opportunities.
Management AI read
Management emphasized that AI is driving real business results across the company, with Gemini processing 1.3 quadrillion monthly tokens (20x growth YoY) and driving incremental Search query growth. They positioned their full-stack approach (chips, models, products) as a key differentiator, with nine of top 10 AI labs choosing Google Cloud and strong adoption of AI products across Search, Cloud, a
Investment and capacity
Management raised 2025 CapEx guidance to $91-93 billion (up from $85 billion) and signaled a 'significant increase' in CapEx for 2026, driven by AI infrastructure demand. They noted a tight demand-supply environment for cloud capacity through 2026, investing aggressively to meet customer demand.
all 7 named companies below
Companiesreturns since call
Customers
ANTHROPIC
Customers
Sundar Pichai
Anthropic's massive TPU commitment signals rapid scaling of its AI compute needs and validates Google's custom silicon, highlighting Anthropic's growth trajectory.
Evidence
“we are excited that Anthropic recently shared plans to access up to 1 million TPUs.”
Customers
Philip Schindler
Kayak (Booking Holdings) is adopting Google's AI Max and Surge, improving ad conversion efficiency; this suggests Kayak's marketing spend may yield higher returns.
Evidence
“Kayak, for example, looked to grow conversions while staying within their ROAS goals. After turning on AI Max and Surge, they grew the conversion value by 12% in early tests.”
Customers
Philip Schindler
SoFi is achieving strong conversion lift from Google's Performance Max, highlighting its digital marketing effectiveness and potential for continued growth.
Evidence
“SoFi has been using PMax to meet its ambitious growth targets and help drive a 39% improvement in its conversion volume year over year.”
Customers
Philip Schindler
Comcast Xfinity is using YouTube Shorts and AI-driven ads effectively, improving brand recall and search lift, which may support its ad spend allocation.
Evidence
“Thanks to a collaboration with DoItPerfect, Comcast Xfinity drove an 8% search lift, beating other Xfinity ads recall lift on shorts by 34%.”
Partners
Partners
Sundar Pichai
Samsung is partnering with Google for its XR headset, leveraging Android XR, which may boost Samsung's consumer electronics ecosystem.
Evidence
“we launched Android XR, our new operating system that's Samsung's Galaxy XR device.”
Partners
Philip Schindler
PayPal is collaborating with Google to enable AI-driven agentic commerce, potentially expanding its merchant services and transaction volumes.
Evidence
“We have a partnership with PayPal to help merchants build agentic commerce experiences.”
Suppliers
Suppliers
Sundar Pichai
Google expects a tight demand-supply environment for cloud capacity through 2026, even as it raises capex aggressively. — Persistent supply tightness for AI infrastructure implies sustained high demand for GPU chips and data center equipment, benefiting NVIDIA and other hardware suppliers as Google continues to invest heavily.
Evidence
“we are now shipping the new A4X MAX instances powered by NVIDIA GB300 to our cloud customers.”
External signals
Supply-chain alpha · 2returns since call
Google expects a tight demand-supply environment for cloud capacity through 2026, even as it raises capex aggressively.
Google raised its 2025 capex guidance by $6-8 billion to $91-93 billion, indicating stronger-than-expected investment in AI infrastructure.
Methodology & coverage
Management-only analysis. All 7 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.