WASHINGTON (dpa-AFX) - Alphabet Inc. (GOOG, GOOGL) on Wednesday reported a drop in profit for the third quarter despite strong revenue growth, as higher expenses weighed on earnings. Revenue surged 103% at Google Cloud, driven by demand for AI infrastructure and solutions.
Net income fell to $26.17 billion or $2.12 per share from $34.98 billion or $2.87 per share a year earlier.
Revenue increased 25% to $127.58 billion from $102.35 billion, marking the company's 13th consecutive quarter of double-digit revenue growth. Operating margin improved to 31.8% from 30.5%.
Google Services revenue grew 11% to $96.30 billion, supported by a 12% increase in Google Search and other revenue. Google Cloud revenue more than doubled to $30.71 billion from $15.16 billion a year earlier. However, Other Bets revenue remained relatively small at $372 million.
Other income and expense swung to a net expense of $8.22 billion from net income of $12.76 billion a year earlier, primarily reflecting losses on equity securities.
Alphabet's board declared a quarterly cash dividend of $0.22 per share on its Class A, Class B and Class C stock, payable December 14 to shareholders of record December 7.
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