A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our Investor Relations website located at abc.xyz/investor. This was a terrific quarter for Alphabet, driven by double-digit growth across every major part of our business. Our revenue number has doubled since then, and we are firmly in the generative AI era. Cloud had another great quarter of accelerating growth with AI revenue as a key driver.
We crossed 300 million paid subscriptions led by growth in Google One and YouTube Premium. We are investing in TPU capacity to meet the tremendous demand we are seeing from customers and partners, and we are excited that Anthropic recently shared plans to access up to 1 million TPUs. We are now processing over 1.3 quadrillion monthly tokens, more than 20x growth in a year. This growth rate increased in Q3, largely driven by our AI investments in Search, most notably AI Overviews and AI Mode.
In the U.S., we have seen strong and consistent week-over-week growth in usage since launch, and queries doubled over the quarter. Over the last quarter, we rolled out AI Mode globally across 40 languages in record time. Most importantly, AI Mode is already driving incremental total query growth for Search. Our complete enterprise AI product portfolio is accelerating growth in revenue, operating margins, and backlog.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year CapEx | FY2025 | $91 billion-$93 billion |
| CapEx direction | FY2026 | significant increase expected (details on Q4 call) |
| Depreciation growth rate | Q4 2025 | expected to accelerate slightly |
| Metric | YoY | Note |
|---|---|---|
| Consolidated revenue | +16% (15% cc) | Double-digit growth across Search, YouTube ads, subscriptions, and Cloud; first $100B+ quarter. |
| Google Search and other revenue | +15% | Growth across all major verticals, largest contributions from retail and financial services; AI experiences expanding queries. |
| YouTube advertising revenue | +15% | Driven by direct response advertising, followed by brand. |
| Network advertising revenue | -3% | Continued network decline. |
| Subscriptions, platforms and devices revenue | +21% | Very strong growth in YouTube and Google One subscriptions. |
| Google Cloud revenue | +34% | GCP grew much faster than Cloud overall; enterprise AI infrastructure and solutions plus Gemini 2.5 demand; GenAI-product revenue up 200%+. |
| Google Cloud operating income | +85% (margin 17.1%->23.7%) | Strong revenue and expense efficiencies, partly offset by higher technical infrastructure usage costs including depreciation and energy. |
| Google Services operating income | +9% | Margin fell to 38.5% as revenue growth and efficiencies were offset by the EC fine fully reflected in the segment. |
| Alphabet operating income | +9% (+22% ex-EC fine) | Operating margin 30.5% (33.9% ex-fine); revenue growth offset by the legal charge and higher depreciation. |
| Net income | +33% | Grew to $35 billion, aided by $12.8 billion of other income from unrealized gains on non-marketable equity securities. |
| Earnings per share | +35% | Net income growth and lower share count; EPS $2.87. |
| Other Bets revenue | $344 million (operating loss $1.4 billion) | Continued investment, with more resources to Waymo. |
| Depreciation expense | +41% | CapEx build-out flowing to depreciation; $5.6 billion in the quarter. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Monthly tokens processed across surfaces | 980 trillion (July) | over 1.3 quadrillion (20x growth in a year) | — |
| Cloud backlog | $106 billion (Q2) | $155 billion (+46% sequential, +82% YoY) | — |
| Gemini app monthly active users | 450 million (Q2) | over 650 million | — |
| Full-year 2025 CapEx outlook | ~$85 billion | $91 billion-$93 billion | — |
| First-party model token throughput | not previously disclosed at this cadence | 7 billion tokens per minute via direct API | — |
| Paid clicks / CPCs (per 10-Q) | paid clicks +4% YoY (Q2) | paid clicks +7% YoY, CPCs +7% YoY | — |
| GenAI-model product revenue growth | not disclosed at this rate prior | more than 200% YoY | — |