Google's Cloud Revenue Grows 35% in Q3... After-Hours Up Over 4%

Google's cloud division revenue in the third quarter jumped 35%, surpassing market expectations.

Google's parent company Alphabet announced on the 29th (local time) that it recorded revenue of $88.27 billion and earnings per share of $2.12 in the past third quarter.

The revenue increased by 15% compared to the same period last year. It exceeded Wall Street's forecast of $86.3 billion compiled by market research firm LSEG. Earnings per share also surpassed the forecast of $1.85.

Digital advertising revenue, which accounts for the largest portion of revenue, recorded $65.85 billion, up about 10% from the same period last year.

Cloud division revenue, considered a growth driver, reached $11.35 billion, exceeding the market expectation of $10.88 billion. It surged 34.9% from $8.41 billion in the same period last year.

YouTube advertising revenue increased about 12% year-over-year to $8.92 billion, surpassing the forecast of $8.89 billion.

Google posted better-than-expected results as digital advertising business continued to grow and AI-based demand for cloud services increased.

Sundar Pichai, Google CEO, said that investments in artificial intelligence (AI) in the search and cloud divisions are paying off, adding, "YouTube revenue has exceeded $50 billion over the past year."

On the day, Alphabet's stock price rose 1.66% on the New York Stock Exchange ahead of the earnings announcement. In after-hours trading following the earnings release, it is rising by over 4%. Google's stock price has jumped about 22% this year.