Google Parent Alphabet’s Stock Pops as Cloud Revenue Soars on AI Demand

Google parent Alphabet (GOOGL) reported third-quarter results that topped analysts’ estimates, sending shares higher after the bell Tuesday.

Alphabet’s third-quarter revenue climbed 15% year-over-year to $88.27 billion, above the analyst consensus from Visible Alpha. Net income came in at $26.3 billion or $2.12 per share, up from $19.69 billion or $1.55 per share a year earlier, beating Street estimates.

Google Cloud delivered revenue of $11.4 billion, exceeding analysts’ expectations and representing 35% growth from the year-ago period as demand for artificial intelligence (AI) surged. Google Cloud’s AI infrastructure and generative AI solutions led growth, along with other core cloud products.

The quarter was also Alphabet’s first since former Eli Lilly (LLY) executive Anat Ashkenazi took over as the company’s chief financial officer on July 31.

Shares of Alphabet surged 4% in extended trading following the release. They were up nearly 22% for the year through Tuesday’s close.