(Klaudia Radecka/Getty Images)

Google earnings and revenue blow past Wall Street’s expectations

Alphabet’s stock is soaring in early trading on Thursday.

10/29/25 4:05PM

Google is still rising, up almost 8% in premarket trading as of 5:20 a.m. ET, after it posted fiscal third-quarter earnings that surpassed Wall Street’s expectations yesterday evening, helped by big growth in its Google Cloud business.

For the quarter, the search giant’s parent company, Alphabet, reported earnings per share of $2.87, compared with FactSet analyst estimates of $2.26. Alphabet posted $102.3 billion in revenue. Analysts were expecting revenue of $99.9 billion.

Google’s parent company boosted its full-year capital expenditure outlook to between $91 billion and $93 billion, compared with its previous roughly $85 billion level.

“Better ad targeting likely contributed to a further sequential increase in growth for core Search and YouTube ads to around 15% for each segment, while Gemini’s token usage of 7 billion per minute for its API business is around that of leading frontier models such as OpenAI,” Bloomberg Intelligence analysts Mandeep Singh and Robert Biggar wrote yesterday.

Let’s break down the results for Alphabet’s many divisions:

📺 YouTube’s Q3 ad revenue rose 15% to $10.3 billion.
☁️ Google Cloud revenue for Q3 was $15.2 billion, rising 34% year over year, driven by growth in its AI Infrastructure and Generative AI Solutions division. Analysts were expecting revenue of $14.7 billion and 29.5% year-on-year revenue growth. And this business ended the quarter with $155 billion in backlog.
🔎 Google’s Search business brought in $56.6 billion, up 14.5%.
💰 Google advertising revenue was $74.2 billion, a 12.6% increase year over year.

The company is expected to release Gemini 3 in December, a major update to its flagship AI model, and Bloomberg reported that Apple may be working to use Gemini to power an AI-enhanced Siri.

Alphabet must be breathing easy after a September decision by a federal judge to not break the company up as remedy to the federal antitrust case against it, which found that the company held a monopoly in search and online advertising. Other remedies are still under consideration by the court.

In the earnings release, CEO Sundar Pichai said Alphabet’s Gemini app now has more than 650 million monthly active users.

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Oil settles Friday at highest level since start of war

US oil prices moved higher in afternoon trading Friday, sapping strength from the stock market as they posted their highest close since the start of the Iran war.

After another day where the Strait of Hormuz was essentially closed to global tanker traffic, US futures for West Texas Intermediate settled up 3.1% at $98.71 a barrel for an 8.6% weekly gain, per Dow Jones data.

American officials have discussed using the US Navy to escort tankers through the narrow waterway between Iran and Oman, but have said plans for such convoys are not ready yet. However, it is unclear if military convoys would bring an end to the war-related dislocations in the oil market.

“It could help,” Tom Liles, senior vice president of upstream research at energy consulting firm Rystad, told Sherwood News in a recent interview. “It could also go in a lot of different directions if a Navy ship is hit or if a tanker is hit.”

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Stocks post third straight week of losses as Brent crude surges above $100

Stocks wiped out early gains to close lower amid the ongoing war in Iran.

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Memory stocks rebound off last weeks losses

Memory stocks Micron, Sandisk, Western Digital, and Seagate Technology Holdings rose again Friday, putting these crucial providers of chips for AI inference work on track for big weekly gains after last week’s steep losses following the outbreak of war with Iran.

There’s no obvious trigger for the move higher for these shares this week, other than a bit of a recovery in the AI trade more broadly — AI beneficiaries like IT cable and connections maker Amphenol and custom chip and networking company Marvell Technology clawed back some gains this week — perhaps due Oracle’s earnings earlier, and some mean reversion to boot.

Micron is due to report earnings after the close of trading on Wednesday, with the company catching a couple price target hikes this week, including one from Wedbush on Friday.

Sandisk is something of a different story, as its enormous gains over the last 12 months — roughly 1,200% — have made it a momentum play beloved by the retail crowd.

It was up about 20% this week at around 11 a.m. ET. And its nearly 170% gain this year keeps the stock on top of the S&P 500, in terms of price performance.

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The S&P 500’s internals are awful... while it’s still less than 5% from its record closing high

The breadth of negative momentum within the index’s constituents is even worse than at the tariff-induced market bottom in April 2025.