Alphabet posts first-ever $100 billion quarter, driven by surge in AI, Cloud and YouTube growth

Alphabet reported its first-ever $100 billion quarter, powered by AI-driven growth in Search, Cloud, and YouTube. CEO Sundar Pichai said Gemini reached 650 million users, while Google’s cloud backlog rose 46% to $155 billion amid record paid subscriptions.

New Delhi: Sundar Pichai, CEO and Director of Google’s parent company Alphabet, has announced that the company has achieved its first $100 billion quarter, fuelled by strong double-digit growth across all its verticals, including search, cloud and YouTube.

During Alphabet’s Q3 2025 earnings call, Pichai announced that the Gemini app has surpassed 650 million monthly active users, with queries increasing threefold since Q2.

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“Cloud had another great quarter of accelerating growth with AI revenue as a key driver. The cloud backlog grew 46 per cent, quarter-over-quarter, to $155 billion. And we crossed $300 million in paid subscriptions, led by growth in Google One and YouTube Premium,” said Pichai.

AI Mode, launched globally in 40 languages, now has over 75 million daily active users, and the company shipped 100 product improvements in Q3, he said, adding that AI Mode is already driving incremental total query growth for the company’s Search vertical.

Alphabet’s first-party models process approximately 7 billion tokens per minute through a direct API used by its customers.

“We are scaling the most advanced chips in our data centers, including GPUs from our partner, NVIDIA, as well as our own purposeful TPUs,” the CEO added.

Google Services revenue reached $87 billion for the quarter, up 14 per cent YoY, said Philipp Schindler, Senior Vice President & Chief Business Officer of Google, in the quarterly earnings call.

Accelerated growth in Search and YouTube drove the surge, partially offset by a YoY decline in network revenues.

The 15 per cent increase in Google Search was led by growth across all major verticals, with the largest contributions from retail and financial services. YouTube saw similar performance across verticals with 15 per cent growth in advertising revenues.

Google’s investments in new AI experiences, such as AI Overviews and AI Mode, continued to drive growth in overall queries, including commercial queries, creating more opportunities for monetisation, he said.