Alphabet reported Q3 2025 revenue of $102.35 billion, up 15.95% year-over-year, and net income of $34.98 billion, up 32.99%. Operating cash flow reached $48.41 billion (up 57.7%) and free cash flow was $14.02 billion (up 8.7%). The company’s net margin expanded to 34.2% and EPS grew 35.4% to $2.87, underscoring its ability to scale revenue while improving profitability at the $100 billion-per-quarter level.

Search advertising generated $56.6 billion (up 15%), YouTube ad revenue reached $10.3 billion (up 16%), and Google Network ads contributed $7.6 billion. Faster-growing non-ad businesses include Subscriptions, Platforms & Devices at $12.9 billion (up 21%) and Cloud at $15.2 billion (up 34%). Together, these lines now account for nearly 30% of total revenue, linking the company more directly to enterprise IT spending and AI workloads.

Alphabet’s push to convert its custom Tensor Processing Units into a drop-in alternative for Nvidia GPUs is centered on deep PyTorch integration and strategic partnerships, including a managed TPU service deal with Meta. The pending Intersect energy and data-center acquisition adds 10.8 GW of power capacity by 2028, securing low-cost, reliable energy for AI expansion. These moves aim to build a vertically integrated AI stack from chip design through power generation and data-center operation.

The stock trades at roughly 32 times trailing earnings, reflecting investor willingness to pay for sustained double-digit growth. Consensus forecasts call for EPS of $9.99 in 2025 (up ~32% YoY), $10.64 in 2026 (up 5%), and $12.08 in 2027 (up 16%), implying that strong earnings growth should drive the forward multiple lower toward the mid-20s over the next three years. With $98.5 billion in cash on the balance sheet and consistent free cash flow generation, the company has ample flexibility for buybacks, R&D and capital expenditure on new AI initiatives.