Google rings in $88.3B in Q3 revenue, driven by AI-powered ad growth

Alphabet's Q3 2024 earnings report exceeded Wall Street expectations, with revenue reaching a record $88.3 billion, up 15% from the same quarter in 2023. Google 's core advertising business drove the bulk of this, contributing $65.9 billion.

The company also posted a record-breaking net income of $26.3 billion and an EPS of $2.12, both surpassing analyst estimates. In comparison, YouTube’s ad revenue hit $8.92 billion as Google continues to expand its video platform's reach.

In the context of India’s digital advertising market, Google ’s financial momentum signals an increased focus on AI-powered ad solutions across Search and Cloud. CEO Sundar Pichai emphasized, “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.”

This is particularly relevant as Google rolls out its new AI tools aimed at enhancing user engagement and boosting ad performance.

With Alphabet’s stock gaining after the announcement, it reflects market confidence in Google ’s long-term AI vision, though the company continues to face scrutiny over antitrust issues.

Pichai remarked, “We generated strong revenue growth in the quarter, and our ongoing efforts to improve efficiency helped deliver improved margins. I’m looking forward to driving more advances for consumers, customers, and creators globally.”

Amid competitive pressures from rivals like Meta, and concerns over its ongoing antitrust lawsuit in the US, Google ’s robust revenue growth underscores its stronghold in search and programmatic ads in India, where advertisers are seeking higher returns on ad spend in an increasingly digitized ecosystem.

As India’s digital advertising landscape accelerates, Google ’s advances in AI, especially in Search and Cloud, could provide new opportunities for brands looking to leverage predictive insights and data-driven campaigns.