Google Q3 earnings push shares in Alphabet higher

Alphabet reported a forecast-beating rise in third-quarter profits after the close on Wall Street on Thursday, reflecting, the company said, strength across Google and Other Bets.

"We had a terrific quarter, with revenues up 24% year on year, " said Ruth Porat, chief financial officer of Alphabet. "Our momentum is a result of investments over many years in fantastic people, products and partnerships."

Diluted earnings per share for the July-September period of $9.57 easily beat market forecasts of $8.33 as sales rose 24% to $27.8bn. Net income rose nearly 24% from the same quarter in 2016 to $6.7bn.

Alphabet's Other Bets division includes Waymo self-driving cars: Shutterstock

Alphabet comprises Google, which also owns video streaming platform YouTube, and Other Bets, a division which includes the Waymo business designing self-driving cars and Verily the life-sciences unit.

Other Q3 highlights

• Operating income rose 26% to $7.78bn
• Operating margin rose to 28% from 26% in 2016
• Google operating income rises 22% to $8.74bn
• Other Bets operating loss narrows to $812m

Market reaction

In pre-market trade on Friday the shares in Alphabet were up 2.9% to $1001.