Alphabet, the parent company of Google and YouTube, posted its third straight quarter of gains when it reported its earnings on Tuesday. The tech giant had far exceeded analysts’ expectations in the previous two quarters, and Tuesday’s results showed growth in both digital advertising and demand for Google Cloud.

“The dynamic throughout the company is extraordinary. Our commitment to innovation and our long-term focus and investment in AI are paying off as consumers and partners benefit from our AI tools,, said CEO Sundar Pichai.

Analysts expected revenue to grow 12% year over year to $86.23 billion and earnings per share of $1.85. Alphabet reported overall growth of 15% for the quarter, with revenue of $88.27 billion and earnings per share of $2.12. Advertising revenue increased 10% and cloud services revenue increased 35%. Pichai highlighted YouTube’s growth in both ads and subscriptions.

Enthusiasm for new artificial intelligence products in recent years has boosted Google’s stock price, which is up 20% in 2024 and more than 150% over the past five years. The company has been a leading player in the AI ​​boom, although it is often viewed as a step behind the innovative offerings of OpenAI, which works closely with rival Microsoft.

Despite its success, Google faced a number of legal problems in 2024. The earnings announcement is the first since the company’s serious loss in its antitrust case against the US government. US Justice Department lawyers are considering a proposal to break up the Android maker after a judge declared it an illegal monopoly. Billion-dollar deals between Google and other tech giants, a focus of the trial, were deemed anti-competitive; The judge can revoke them after the monopoly ruling or completely separate subsidiaries from the parent company.

Earlier this month, Google was ordered to overhaul the Google Play Store following another antitrust loss against Fortnite maker Epic Games. Google must make Android apps available from competing sources and cannot prohibit the use of in-app payment methods, the judge’s order said.

Another antitrust case that began in September is currently ongoing. The US Department of Justice accuses Google of having built an illegal monopoly on online advertising.

Google’s self-driving car division, Waymo, has deployed a fleet of autonomous vehicles in several US cities and started offering paid rides. On the same day as the earnings report, the subsidiary announced that it had raised $5.6 billion in funding from both its parent company and third-party investors. Although the self-driving car business is not a significant revenue driver compared to the billions generated by advertising, it has growth potential, Pichai said.