The Mountain View, Calif., company reported earnings of $22.30 a share on revenue of $56.9 billion. Analysts were expecting earnings of $15.90 a share on revenue of $53.13 billion.
The results reflect particularly the accelerating transition to online services and the cloud, Chief Executive Sundar Pichai said in a statement.
Alphabet shares at last check jumped 5.6% to $2,026. They closed the regular Tuesday trading session up 1.4% at $1,919.
Alphabet said it was separating into three reporting segments going forward: services, cloud, and what it called other bets.
Services was by far Google's biggest revenue generator, with $52.9 billion in revenue in the fourth quarter. Cloud revenue for the quarter was $3.8 billion. Other bets generated $196 million in revenue.
The company also said that a change in the assessment of the shelf life of its servers and network equipment to four years from three years will save the company about $2.1 billion in fiscal 2021.
TheStreet's Jim Cramer had called Alphabet's third-quarter results the best he'd ever seen after its report of earnings of $11.25 billion, or $16.40 a share, on revenue of $46.17 billion.