Alphabet Inc (ABEA.F) Q3 2025 Earnings Report

Alphabet delivered a solid QQ3 2025 performance with broad-based strength across core businesses. Revenue of $102.346 billion rose 15.95% year over year and 6.14% quarter over quarter, underpinned by resilient advertising demand, continued monetization of YouTube, and buoyant Google Cloud activity. Gross margin extended to 59.6% while operating margin stood at 30.5%, contributing to a net margin of 34.2% and earnings per share of $2.89 (diluted $2.87). The company generated substantial cash flow, with operating cash flow per share at $4.01 and free cash flow per share at $2.02, supported by a cash balance per share of $8.15 and a conservative balance sheet with low leverage.

The quarterly results reinforce Alphabet’s differentiated mix: Google Services remains the dominant driver, the Google Cloud segment continues to scale, and Other Bets progress remains a longer-term growth lever. Management commentary has emphasized continued investments in AI, cloud infrastructure, and platform monetization. While the core ad business benefits from an improving digital ads environment, Alphabet faces ongoing macro and regulatory risks, as well as competitive pressures from peers like Meta and Microsoft. Given the current trajectory, Alphabet appears well-positioned to sustain solid profitability and cash generation, though revenue growth may normalize as ad-market dynamics evolve and AI-related investments mature.