Google parent Alphabet topped third-quarter revenue expectations on Tuesday, helped by steady growth in its digital advertising business and an AI-driven jump in demand for its cloud services.
Shares of the company rose more than 3% in extended trading.
CEO Sundar Pichai said investments in AI were “paying off” through use and sales in its Search and Cloud businesses.
YouTube revenue surpassed $50 billion over the past four quarters, he said. Ad sales for the video streaming service rose 12% to $8.92 billion.
Digital advertising sales – the biggest chunk of Alphabet’s total revenue – rose to $65.85 billion from $59.65 billion.
Revenue from Google’s cloud platform grew to $11.35 billion, beating analysts’ estimate of $10.86 billion.
Alphabet reported a profit of $2.12 per share. Analysts were expecting per-share earnings of $1.85.
Revenue increased 15% to $88.27 billion in the July-September period, while analysts on average expected $86.30 billion, according to LSEG data.