Alphabet Stock Jumps As Earnings Beat Estimates

Alphabet's stock has surged almost 6% after the Google parent reported fiscal third-quarter earnings that surpassed analysts' expectations on both the top and bottom lines, driven by strong growth in its cloud business, Hamza Shaban reported, for Yahoo Finance.

Google CEO Sundar Pichai highlighted the growth of the cloud unit during an earnings call. I Photo: Maurizio Pesce Flickr

The search giant reported earnings per share of $2.12 on revenue of $88.27 billion for the quarter ended Sept. 30. This represents a profit and sales increase of 37% and 15%, respectively, compared to the same period last year.

Analysts had anticipated earnings per share of $1.83 on revenue of $86.44 billion, according to data compiled by Bloomberg.

Advertising revenue exceeded expectations, reaching $65.85 billion compared to analysts' projections of $65.5 billion, up from $59.65 billion in the year-ago period.

Google CEO Sundar Pichai highlighted the growth of the cloud unit during an earnings call, noting that the company's AI portfolio is attracting new customers and leading to larger deals.

Cloud revenue came in at $11.4 billion, a 35% increase from the same period last year, surpassing expectations.

“This business has real momentum, and the overall opportunity is increasing as customers embrace generative AI," he said.