Revenue growth at Google’s cloud unit slowed to 22.5% in the third quarter, from 28% in the prior three-month period. – ReuterspicGoogle parent Alphabet’s cloud business crawled to its slowest in 11 quarters, sending the company’s stock down 5.7% after hours, even as sales at rival Microsoft’s cloud unit boomed.
Google Cloud third-quarter revenue rose 22.5% to US$8.41 billion , the slowest growth since at least the first quarter of 2021. The cloud unit reported a operating income of US$266 million, compared with an operating loss of US$440 million a year ago. Wall Street expected cloud computing revenue of US$8.62 billion.
“Despite Alphabet topping quarterly earnings and revenue estimates, investors were disappointed by the relatively weak performance at its Google cloud platform, which is at risk of falling further behind Azure and AWS,” Investing.com senior analyst Jesse Cohen. Alphabet reported a net profit of US$19.69 billion for the July-September period, compared with US$13.91 billion a year earlier.