Google Parent Alphabet Shares Rise as Cloud Revenues Boost on Demand for AI

Google parent Alphabet (GOOGL) reported third-quarter results that beat analysts’ estimates, sending shares higher after Tuesday’s report.

Alphabet’s third-quarter revenue rose 15% year-over-year to $88.27 billion, beating the consensus of Visible Alpha analysts. Net income was $26.3 billion, or $2.12 per share, compared with $19.69 billion, or $1.55 per share, a year earlier, beating Street estimates.

Google Cloud posted revenue of $11.4 billion, beating analysts’ expectations and representing 35% year-over-year growth as demand for artificial intelligence (AI) surged. Google Cloud’s AI infrastructure and generative AI solutions, along with other core cloud products, drove growth.

The quarter also marked Alphabet’s first since former Eli Lilly (LLY) executive Anat Ashkenazi took over as the company’s chief financial officer on July 31.

Alphabet shares rose 4% in extended trading after the report. By Tuesday’s close, they were up nearly 22% for the year.