Google’s strong earnings boosted by cloud computing growth

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Shares in parent company Alphabet rise 5% in after-hours trading

Alphabet’s profit jumped 34 per cent in the third quarter, as the US search giant reported strong growth in cloud computing amid robust demand for computing and data services used to train and run generative artificial intelligence models. Net income was $26.3bn compared with $19.7bn in the same period a year earlier, exceeding analysts’ expectations for $22.8bn, the parent company of Google reported on Tuesday. Revenue rose 15 per cent to $88.

1tn and making it the fourth most valuable listed company in the world behind Apple, Nvidia and Microsoft. Google is the first of Silicon Valley’s tech giants to report earnings this quarter, and its financials underline the vast sums that are being spent on data centres and advanced chips that power AI.

 

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