On Wednesday, Google’s parent company, Alphabet, announced that it had exceeded $100 billion in quarterly revenue for the third quarter of the year — the first time the company has reached this milestone. The earnings report showed that Alphabet’s AI bet was paying off in the form of rising revenue for its AI services, especially Google Cloud.

Alphabet posted $102.3 billion in revenue for the third quarter of 2025, a 16% year-over-year increase and double from $50 billion just five years ago. The figure was well ahead of analyst estimates of $99.89 billion for the quarter. Net income rose 33% to nearly $35 billion.

Other big tech companies have hit this quarterly revenue before. Amazon, for example, exceeded $100 billion in quarterly revenue for the first time in the fourth quarter of 2020, with total sales of $125.6 billion for that period. The e-commerce giant is expected to report revenue between $174 billion and $179.5 billion for the third quarter of 2025 on Thursday.

Apple also hit quarterly revenue of over $100 billion for the first time in its fiscal first quarter of 2021, driven by strong iPhone 12 sales. Apple will release its fourth-quarter earnings after the bell on Thursday and is expected to report revenue of $102.1 billion.

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Alphabet’s growth was driven by Google Cloud, which houses Alphabet’s AI services. The division saw revenue rise 34% year-over-year to reach $15.2 billion, indicating growing demand for AI. The segment saw a backlog of customer requests, as demand for enterprise AI infrastructure and services exceeded the company’s ability to supply them. Google Cloud ended the quarter “with $155 billion in backlog,” Alphabet CEO Sundar Pichai said in the earnings release, a growth of 46% quarter-over-quarter.

Alphabet’s $100 billion quarter doesn’t just mark a financial achievement. According to Tech Buzz, it’s also evidence that AI has transitioned from an experimental feature to a key revenue stream. The company’s successful range of AI products, including cloud services for enterprise, shows that it is going all-in on AI as a core growth engine.

Pichai emphasized on the call that almost every major generative AI startup relies on Google Cloud, positioning Alphabet as an essential part of the AI economy. He said that over 70% of Google Cloud’s existing customers use its AI products and gave the example of enterprise clients like Best Buy. Google Cloud signed more deals over $1 billion with enterprise clients in the first nine months of the year than it did the previous two years combined, Pichai mentioned.

“This was a terrific quarter for Alphabet, driven by double-digit growth across every major part of our business,” Pichai told investors during the earnings call on Wednesday. “We’re seeing AI now driving real business results across the company.”

Alphabet is on track to rival some of its biggest competitors in revenue. Microsoft, for example, posted 40% revenue growth in its Azure cloud business on Wednesday. Azure hit $30.9 billion in revenue, up 28% from the previous year.

Alphabet also disclosed on Wednesday in its earnings report that its flagship AI app, Google Gemini, now has more than 650 million monthly active users, up from 450 million last quarter. Gemini is playing catch-up with OpenAI’s ChatGPT, which had 800 million users per week, according to OpenAI CEO Sam Altman’s remarks earlier this month.

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Other parts of Alphabet’s business are also booming — Google Search and YouTube each saw double-digit growth. Google Search revenue rose by 15% to $56.6 billion while YouTube ads increased by 15% to $10.3 billion.

This year, Alphabet is doubling down on capital expenditures, or spending mostly on data centers and custom AI chips. The company expects to spend $91 billion to $93 billion on capital expenditures, between Amazon’s $118 billion and Meta’s $70 billion, and up from $52.5 billion in 2024.

Even with those large investments, Alphabet remains profitable. Its operating margin, or the profit it made from core business operations per dollar of sales, was 30.5% in the third quarter.

Alphabet stock was up 5% today and up over 50% year-to-date.

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On Wednesday, Google’s parent company, Alphabet, announced that it had exceeded $100 billion in quarterly revenue for the third quarter of the year — the first time the company has reached this milestone. The earnings report showed that Alphabet’s AI bet was paying off in the form of rising revenue for its AI services, especially Google Cloud.

Alphabet posted $102.3 billion in revenue for the third quarter of 2025, a 16% year-over-year increase and double from $50 billion just five years ago. The figure was well ahead of analyst estimates of $99.89 billion for the quarter. Net income rose 33% to nearly $35 billion.