Alphabet stock leaps as Google parent crushes Q3 earnings

Alphabet posted stronger-than-expected third quarter earnings Tuesday, including an outsized surge in revenues for its flagship cloud division, as the tech giant looks to ease investor concern over a surge in capital spending on AI-related technologies.

Alphabet (GOOGL) said earnings for the three months ending in September rose xxx from last year to xxx cents per share, topping Street forecasts of $1.85 per share. Overall group revenues, the company said, rose xx% to $xxx billion, again topping analysts' estimates of an $86.3 billion tally.

Search and other revenues rose 11% to $44.03 billion while YouTube ad sales rose by an impressive 12.4% to $7.95 billion, and came in just ahead of Street forecasts. Google cloud revenues, however, were only up were up 22.5% at $8.41 billion.

“The momentum across the company is extraordinary. Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools," said CEO Sundar Pichai. "In Search, our new AI features are expanding what people can search for and how they search for it."

Related: Mag 7 earnings: What to know before Apple, Alphabet, Microsoft, and Meta report results

"In Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers and win larger deals. And YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.," he added. "We generated strong revenue growth in the quarter, and our ongoing efforts to improve efficiency helped deliver improved margins.”

Alphabet shares were marked 4.1% higher in after-hours trading immediately following the earnings release to indicate a Wednesday opening bell price of $178.09 each.

Related: Veteran fund manager sees world of pain coming for stocks

The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.