Google Cloud Q3 revenue up 103%, but Alphabet results light

Alphabet said Google Cloud revenue surged 103% to $30.7 billion with strong demand across AI workloads and TPU systems.

The company said Google Cloud delivered third quarter operating income of $11.12 billion on revenue of $30.7 billion. Alphabet said its first party APIs are processing 32 million tokens a minute.

Alphabet overall reported third quarter net income of $26.17 billion, or $2.12 a share, on revenue of $127.6 billion. Wall Street was expecting Google to report third quarter earnings of $3.01 a share on revenue of $127.91 billion.

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For the second consecutive quarter, free cash quarter was negative. Third quarter free cash flow was negative $9.065 billion. In the second quarter, free cash flow was negative $5.85 billion.

CEO Sundar Pichai said the company delivered a strong quarter and Alphabet's revenue run rate is nearing $500 billion. "Our AI investments are driving overall Search query growth, including commercial queries. In fact, our year-over year query growth rate is the highest it’s been in the last five years," said Pichai.

By the numbers for the third quarter:

• The Gemini app has 1 billion users.
• The company had 150 million YouTube Music and Premium.
• Alphabet said its at-the-market program as of Sept. 30 had $27.6 billion left.