The third quarter earnings of Alphabet, Google’s parent company, delivered double-digit revenue growth

The company said consolidated revenue increased 15% to $88 billion, while net income increased 34% to $26 billion compared to the same period last year. Google search remains the company’s primary revenue generator, bringing in $49.3 billion in revenue in the quarter, up 12% from a year ago and YouTube and Google Cloud also grew. Revenue from YouTube reached 8.9 billion USD, up 12%, and revenue from Cloud reached 11.3 billion USD, up 34%. Meanwhile, TAC, or traffic acquisition cost, was $13.7 billion, up nearly 9%, and earnings per share increased to $2.12.

All categories performed better than financial analysts predicted, with higher revenue and EPS and slightly lower TAC, pleasing Wall Street. Alphabet shares rose nearly 4.8% to $179.40 in after-hours trading.

CEO Sundar Pichai said in a statement that the company’s “long-term focus and investment in AI” is starting to pay off with both enterprise customers and mainstream consumers.

“In Search, our new AI features are expanding what people can search for and how they search for it,” Pichai said. “In the Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers and win larger deals. And YouTube’s total advertising and subscription revenue surpassed $50 billion for the first time in the past four quarters.”