Alphabet has announced a major financial milestone, reporting its first-ever quarterly revenue exceeding $100 billion. This record performance was attributed to significant growth in its Search, Cloud, and YouTube divisions, driven by advancements in artificial intelligence.
During a recent earnings call for the third quarter of 2025, CEO Sundar Pichai revealed that the company”s Gemini application has reached 650 million monthly active users, with user queries increasing threefold since the second quarter of the year. “The Cloud segment experienced another quarter of impressive growth, with AI revenue playing a critical role,” Pichai stated. He noted that the cloud backlog surged by 46 percent, reaching $155 billion, alongside a significant increase in paid subscriptions, which surpassed 300 million, largely due to gains in services like Google One and YouTube Premium.
Pichai highlighted that the global launch of AI Mode, available in 40 languages, has attracted over 75 million daily active users. The introduction of AI Mode has already contributed to increased total query growth within the Search vertical. The company”s proprietary models are now processing around 7 billion tokens per minute via a direct API utilized by its clients.
Furthermore, the CEO emphasized the ongoing enhancement of its data centers, showcasing the use of cutting-edge chips, including GPUs from NVIDIA and the company”s specialized TPUs. This investment is fundamental to scaling Alphabet”s AI capabilities.
During the earnings call, Philipp Schindler, Senior Vice President and Chief Business Officer of Google, reported that Google Services generated $87 billion in revenue for the quarter, reflecting a year-on-year growth of 14 percent. The surge in revenue was primarily driven by the robust performance of Search and YouTube, although it was somewhat tempered by a decline in network revenues compared to the previous year. Schindler noted a 15 percent increase in advertising revenues from Google Search, with notable contributions from sectors such as retail and financial services. YouTube also experienced solid growth, achieving a similar 15 percent rise in advertising revenues.
Investments in innovative AI experiences, including AI Overviews and AI Mode, have continued to bolster query growth, creating new monetization opportunities for Alphabet.
