Alphabet Inc., the parent company of Google, has reported financial results for the third quarter of 2025. The company generated total revenue of $102.3 billion during the period, representing a 16% increase compared to the same quarter last year.
Free cash flow for the quarter was $24.5 billion. Alphabet ended the quarter with $98.5 billion in cash, cash equivalents, and marketable securities.
The company's market capitalization recently reached $4 trillion. Over the past year, as of January 13, Alphabet's stock price has increased by 75%.
Alphabet's revenue comes from multiple sources including Google Search, YouTube advertising, Google subscriptions, platforms, devices, and Google Cloud. All these business segments showed double-digit growth in the third quarter of 2025.
The company employs a full-stack approach to artificial intelligence. This includes designing chips, providing AI infrastructure, offering development platforms, and integrating consumer AI applications into products like Search, Gmail, and YouTube.
Alphabet currently trades at 30 times forward earnings. This valuation makes it one of the less expensive members of the group of large technology companies known as the Magnificent Seven.
The Motley Fool Stock Advisor analyst team recently identified what they consider the 10 best stocks for investors to buy now. Alphabet was not included in this list. The team noted that the selected stocks could produce significant returns in coming years.
They provided historical examples: Netflix was added to their list on December 17, 2004, and Nvidia was added on April 15, 2005. The Stock Advisor service reports a total average return of 958%, compared to 196% for the S&P 500 index.
Stock Advisor returns are current as of January 16, 2026. Lyle Daly holds positions in Alphabet. The Motley Fool also holds positions in and recommends Alphabet.