"(Bloomberg/Davey Alba and Carmen Arroyo) Alphabet Inc. sales topped quarterly Wall Street estimates, fueled by a surge in demand for its cloud and artificial intelligence services. Shares rose as much as 7.5% in extended trading. Third-quarter sales, excluding partner payouts, rose to $87.5 billion, Alphabet said in a statement Wednesday. That topped the $85.1 billion expected on average by analysts, according to data compiled by Bloomberg. Net income was $2.87 per share, compared with Wall Street's estimate of $2.26."
"The company is investing record amounts to try to push progress in AI, and infuse answers and assistance from its large language model, Gemini, into its popular products including search. The company said capital expenditures for the year will be $91 billion to $93 billion, up from the $85 billion earlier estimate. Competitors Meta Platforms Inc. and Microsoft Corp., which also reported on Wednesday, made similar promises to spend more, and their shares fell in extended trading."
"We are seeing AI now driving real business results across the company, Alphabet Chief Executive Officer Sundar Pichai said on a call with analysts. Our momentum is strong. He added that revenue from products built on Google's generative AI models grew more than 200% from a year earlier, a sign that the company's years of investment in infrastructure and research are beginning to pay off."
Alphabet Inc. reported third-quarter sales excluding partner payouts of $87.5 billion, beating the $85.1 billion analysts expected. Net income was $2.87 per share versus the $2.26 estimate. Shares rose as much as 7.5% in extended trading. Revenue from products built on Google's generative AI models grew more than 200% year-over-year. Cloud computing and search advertising drove notable growth. Capital expenditures for the year were raised to $91–93 billion from a prior $85 billion estimate. About 60% of last quarter's capex went to servers, with the remainder directed to data centers and networking.
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