Executive Summary
Alphabet delivered a solid QQ3 2025 performance marked by continued revenue growth and healthy profitability. Revenue rose to USD 102.346 billion, up 15.95% year-over-year and 6.14% sequentially, with a gross margin of 59.6% and an operating margin of 30.5%, underscoring durable profitability across core operations. Net income reached USD 34.979 billion, producing an EPS of USD 2.89 (diluted USD 2.87), driven by strong operating performance and other income. Free cash flow per share stood at USD 2.02, and operating cash flow per share at USD 4.01, while the company maintained a prudent balance sheet with a low debt ratio (~6.3%) and cash per share of USD 8.15.
Key Performance Indicators
Key Insights
Revenue: USD 102.346B; YoY +15.95%, QoQ +6.14%. Gross Profit: USD 60.977B; YoY +17.73%, QoQ +6.25%. Operating Income: USD 31.228B; YoY +9.49%, QoQ -0.14%. Net Income: USD 34.979B; YoY +32.99%, QoQ +24.06%. EPS: USD 2.89 (diluted USD 2.87); YoY +35.05%, QoQ +24.03%. EBITDA: USD 49.741B; Gross Margin: 59.6%; Operating Margin: 30.5%; Net Margin: 34.2%....
Financial Highlights
Revenue: USD 102.346B; YoY +15.95%, QoQ +6.14%. Gross Profit: USD 60.977B; YoY +17.73%, QoQ +6.25%. Operating Income: USD 31.228B; YoY +9.49%, QoQ -0.14%. Net Income: USD 34.979B; YoY +32.99%, QoQ +24.06%. EPS: USD 2.89 (diluted USD 2.87); YoY +35.05%, QoQ +24.03%. EBITDA: USD 49.741B; Gross Margin: 59.6%; Operating Margin: 30.5%; Net Margin: 34.2%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
102.35B |
15.95% |
6.14% |
| Gross Profit |
60.98B |
17.73% |
6.25% |
| Operating Income |
31.23B |
9.49% |
-0.14% |
| Net Income |
34.98B |
32.99% |
24.06% |
| EPS |
2.89 |
35.05% |
24.03% |
Key Financial Ratios
operatingProfitMargin
30.5%
operatingCashFlowPerShare
$4.01
freeCashFlowPerShare
$2.02
dividendPayoutRatio
7.25%
Management Commentary
No earnings call transcript was provided in the dataset; therefore, transcript highlights and management quotes are not available for QQ3 2025. If an official transcript becomes available, a theme-based synthesis (Strategy, Operations, Market Conditions) with direct quotes will be incorporated.
Transcript not available for QQ3 2025; no quotes can be tethered to a named speaker in this dataset.
— N/A
Transcript not available for QQ3 2025; no quotes can be tethered to a named speaker in this dataset.
— N/A
Forward Guidance
No formal forward guidance was published in the dataset. Based on QQ3 results and industry context, Alphabet appears positioned to expand AI-driven monetization across Search and YouTube, scale Google Cloud, and improve profitability through cost discipline and scale benefits. Near-term uncertainty remains around ad market cyclicality and regulatory scrutiny. Key factors to monitor include: (1) pace of ad revenue growth and monetization of YouTube, (2) Google Cloud revenue growth and margin trajectory, (3) progression of AI product integration and associated operating leverage, (4) evolving regulatory landscape and potential fines or constraints, and (5) capital allocation strategy including share buybacks versus R&D investment in AI capabilities.