"Fast forward to December 2025, and the story has flipped. Google just delivered its first $100 billion quarter, the stock has more than doubled from its early-2025 lows, and real-money prediction markets give the company 89% odds of having the best AI model by year-end. The question isn't whether Google survived the AI threat. It's whether anyone can stop them now."
"Start with Q3 2025. Revenue hit $102.35 billion, up 26% year-over-year. What matters is the quality of that growth. Operating margins sit at 30.5%, profit margins at 32%, and return on equity at 35%. Google is printing money at a scale and efficiency that would make a toll bridge operator jealous. Earnings grew 35% despite the company already sitting at $385 billion in annual revenue. That's not supposed to happen."
Google produced a $102.35 billion quarter in Q3 2025, growing revenue 26% year-over-year with operating margins of 30.5%, profit margins of 32% and return on equity at 35%. Earnings grew 35% despite a $385 billion revenue base. Competitors showed mixed results: Microsoft revenue growth of 18% in Q1 2026 included a $3.1 billion OpenAI investment loss while Azure grew 40%; Amazon's AWS re-accelerated to 20% but operating margins remain 11%; Apple grew 8% and missed estimates; Meta matched 26% revenue growth but took a $15.93 billion tax charge. Google leveraged existing infrastructure and a full-stack AI approach with global rollouts of AI Overviews and AI Mode in Search, earning strong market odds of leading AI models by year-end.
Read at 24/7 Wall St.
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