Alphabet Sales Beat Estimates on Google Cloud Unit Growth (3)

Alphabet Inc. sales topped quarterly Wall Street estimates, fueled by a surge in demand for its cloud and artificial intelligence services. Shares rose as much as 7.5% in extended trading.

Third-quarter sales, excluding partner payouts, rose to $87.5 billion, Alphabet said in a statement Wednesday. That topped the $85.1 billion expected on average by analysts, according to data compiled by Bloomberg. Net income was $2.87 per share, compared with Wall Street’s estimate of $2.26.

The company is investing record amounts to try to push progress in AI, and infuse answers and assistance from its large language model, Gemini, into its ...