Google parent Alphabet becomes first ever company to report quarterly profit of over $100 billion

In a massive corporate milestone, tech conglomerate Alphabet Inc. on Wednesday became the first ever company in the world to record a quarterly profit that exceeded $100 billion.

Google parent Alphabet recorded net income of a whopping $112.1 billion, which was nearly four times higher than a year ago.

To give context, $112 billion is larger than the entire gross domestic product (GDP) of several countries like Morocco, Slovakia or Ecuador.

The company’s earnings per share stood at $9.11, smashing consensus analyst estimates of $2.88 earnings per share.

The nearly 300% year-on-year increase in Alphabet’s net income could be attributed to multiple factors. Let’s take a look at each of them:

1. Better-than-expected revenue

Revenue growth was one of the key drivers of Alphabet’s profit number. The company reported second-quarter revenue of $119.8 billion, an year-on-year increase of 24%.

This is the company’s 12th consecutive quarter of double-digit increase revenue.

Alphabet said that revenue growth was primarily driven by the Google Cloud segment. Revenue of Google Cloud surged 82% to $24.8 billion driven by demand for AI products and infrastructure. Operating income from the segment also more than tripled to $8.8 billion compared with $2.8 billion in the same period a year earlier.

2. Google Services, too, see a boom

Google Services revenue rose 15% year-on-year to $94.5 billion during the second quarter. Within that segment, Google Search and other revenue grew 17% to $63.3 billion, YouTube advertising revenue jumped 13% to $11.1 billion, while subscriptions, platforms and devices revenue rose 15% to $12.9 billion.

YouTube’s growth was driven by creator content and expansion into traditional entertainment like the Academy Awards and NFL games. Alphabet CEO Sundar Pichai highlighted YouTube’s role in keeping viewers informed during major events like the FIFA World Cup, attracting over 1.7 billion unique viewers.

3. Other income, surprisingly, was the key contributor

Alphabet’s other income for the quarter stood at a massive $97.8 billion compared to just $2.2 billion in the same period last year. This number holds the key to the largest quarterly profit ever recorded by a company.

Alphabet informed that the ‘other income’ largely came from its investment in equity securities, which mainly included Anthropic and SpaceX.

Alphabet booked $99 billion in “unrealized and realized” gains on the equity securities in its investment portfolio during the June quarter. This added $77.1 billion to Alphabet’s overall net income after taxes.

Google owned around 6% stake in SpaceX at the end of 2025. The Elon Musk-led company went public in early June at a valuation of $1.77 trillion, up sharply from the $400 billion valuation it had as a private company a year ago.

Anthropic also saw its valuation jump from $350 billion to $965 billion in the same period, according to a report. This pumped Alphabet’s profit figure, albeit on paper, for the quarter.