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October 30, 2025 • 4 min read
Alphabet just released its financial results for the third quarter of 2025, and a dive into its latest 10-Q filing reveals a company firing on nearly all cylinders. The tech giant posted strong growth in both revenue and profit, driven by the continued dominance of its Search business and the impressive acceleration of Google Cloud. Let's break down the key numbers.
For the quarter ending September 30, 2025, Alphabet reported total revenues of $102.3 billion, a solid 16% increase from the $88.3 billion reported in the same quarter last year. This top-line growth translated even more effectively to the bottom line, with net income jumping 33% to $35.0 billion, up from $26.3 billion a year prior.
To better visualize how Alphabet generates its revenue and where the money goes, the following flow diagram illustrates the company's quarterly income statement.
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You might notice the negative $207 million "Unallocated" revenue in the chart. This represents the "Hedging gains (losses)" line item, which is the result of Alphabet's financial risk management activities, such as using derivatives to protect against fluctuations in foreign currency exchange rates.
A closer look at Alphabet's business segments reveals the engines behind its growth.
While revenues were strong, expenses also grew, though one particular item stands out. Total costs and expenses rose to $71.1 billion from $59.7 billion a year ago. A significant portion of this increase came from a massive jump in General and Administrative (G&A) expenses, which more than doubled to $7.4 billion.
The filing reveals the primary reason: a $3.5 billion fine from the European Commission (EC) was recorded during the quarter. This one-time legal expense significantly impacted the overall operating income, which grew by a more modest 9% to $31.2 billion. Without this fine, operating income growth would have been substantially higher.
Alphabet continues to invest heavily in its future. Capital expenditures, which primarily fund technical infrastructure like data centers and servers, were a staggering $24.0 billion for the quarter. This highlights the company's aggressive push to build out its capacity, likely to support the immense computational demands of AI and its growing Cloud business.
The company also continued to return capital to its shareholders, repurchasing $11.6 billion of its own stock during the three-month period.
In conclusion, Alphabet's Q3 2025 report paints a picture of a healthy and growing enterprise. The core advertising business is robust, and Google Cloud is rapidly evolving into a secondary powerhouse of both revenue and, increasingly, profit. While significant legal and regulatory costs remain a factor, the company's massive investments in infrastructure and R&D show it is squarely focused on leading the next wave of technological innovation.
Last updated: October 30, 2025