Alphabet Inc. (GOOGL) reported significant growth in its Google Cloud division, with revenues reaching $41.04 billion for the trailing nine-month period ending September 30, 2025, marking a 31.2% increase year-over-year. Cloud backlog surged by 46% to $155 billion, driven by demand for AI infrastructure and services, particularly around generative AI, which saw a revenue increase of over 200% in Q3 alone.
Despite strong performance, GOOGL faces stiff competition in the cloud sector, with Amazon holding a 29% market share and Microsoft at 20% as of Q3 2025. Alphabet’s capital expenditures are projected between $91 billion and $93 billion for 2025, with investments aimed at bolstering its competitive stance against AWS and Azure. In contrast, Amazon has committed $125 billion to its cloud services, while Microsoft reported a 40% revenue growth in its cloud services in Q1 FY 2026.
Alphabet shares have risen 60.5% over the past 12 months, outperforming the broader technology sector’s 21.6% growth. The Zacks Consensus Estimate for GOOGL’s earnings in 2025 is $10.58 per share, indicating a 31.6% increase from the previous fiscal year.
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