Alphabet Posts 25% Revenue Growth as Google Cloud Jumps 103%

Alphabet Inc. reported third quarter 2026 revenue of $127.6 billion on October 28, 2026, a 25% increase from the same period a year earlier, while net income available to common stockholders fell to $26.2 billion after an $8.7 billion net loss on equity securities.

The results were furnished in a Form 8-K filed with the U.S. Securities and Exchange Commission on October 28, 2026 under the current-report item covering results of operations and financial condition, with the earnings press release attached as Exhibit 99.1. The report is signed by Senior Vice President and Chief Financial Officer Anat Ashkenazi, and the SEC filing index records an acceptance time of 4:01 PM ET. The 8-K notes that Alphabet references non-GAAP financial measures in both the press release and its conference call, with reconciliations contained in the release. The release announced a live audio webcast of the earnings call scheduled for 1:30 PM PT / 4:30 PM ET on October 28, 2026.

Consolidated revenues were $127,577 million for the quarter ended September 30, 2026, compared with $102,346 million a year earlier, a period the company described as its 13th consecutive quarter of double-digit revenue growth. Operating income rose to $40,576 million from $31,228 million, a 30% increase, with operating margin of 31.8%. Diluted net income per common share fell to $2.12 from $2.87.

The decline in net income traces to other income (expense), net, which swung to an expense of $8,221 million from income of $12,759 million in the prior-year quarter. According to the release, the $8.7 billion net loss on equity securities decreased the provision for income tax, net income, and diluted net income per common share by $1.9 billion, $6.7 billion, and $0.55, respectively.

Segment Results

Google Services revenues increased 11% to $96,302 million. Within the segment, Google Search & other revenue was $63,350 million, up 12%; YouTube advertising revenue was $11,207 million versus $10,261 million a year earlier; Google Network revenue was $7,455 million; total Google advertising revenue was $82,012 million; and Google subscriptions, platforms, and devices revenue was $14,290 million versus $12,870 million.

Google Cloud revenues were $30,709 million versus $15,157 million a year earlier, a 103% increase the release describes as record growth, led by Google Cloud Platform across enterprise AI infrastructure and enterprise AI solutions as well as core GCP services. The release states that TPU systems sales were also a meaningful contributor to revenue growth. Other Bets revenues were $372 million, and hedging gains were $194 million. Total traffic acquisition costs were $16,366 million versus $14,876 million a year earlier, and Alphabet reported 204,757 employees versus 190,167.

Segment operating income was $39,157 million for Google Services and $11,121 million for Google Cloud, versus $3,594 million a year earlier for the cloud segment. Other Bets posted an operating loss of $2,047 million. Alphabet-level activities recorded an operating loss of $7,655 million versus $4,467 million, which the release states primarily reflects expenses related to shared AI research and development.

CEO Remarks and AI Operating Metrics

In the earnings press release, Sundar Pichai, CEO of Google and Alphabet, said the company is “now on a half-trillion dollar revenue run rate.” He said Alphabet’s AI investments are driving overall Search query growth, including commercial queries, and that the year-over-year query growth rate is the highest it has been in the last five years.

Pichai described the Gemini 4 Argon and Carbon models as now leading at the frontier, and said first-party model APIs are processing nearly 32 billion tokens per minute, more than four times the volume of a year ago. He also said the Gemini app has reached one billion users, which he called the fastest-growing product in Google’s history, and said YouTube Music and Premium surpassed 150 million subscribers globally, including trials.

Balance Sheet, Cash Flow, and Financing

Total assets stood at $1,003,312 million as of September 30, 2026, versus $595,281 million at December 31, 2025. Cash, cash equivalents, and marketable securities totaled $265,098 million, and long-term debt was $125,102 million versus $46,547 million at the end of 2025.

Net cash provided by operating activities was $42,290 million in the quarter, while purchases of property and equipment were $51,355 million. Free cash flow, a non-GAAP measure the company defines as net cash provided by operating activities less capital expenditures, was negative $9,065 million for the quarter and $19,747 million on a trailing-twelve-month basis.

During the quarter, Alphabet issued 12 million shares of Class A stock for net proceeds of $4.3 billion and 24 million shares of Class C stock for net proceeds of $8.1 billion under its at-the-market program, with $27.6 billion remaining available for future issuance as of September 30, 2026. The company also issued senior unsecured notes for net proceeds of $28.7 billion, to be used for general corporate purposes. Alphabet repurchased no stock in the quarter, versus $11,504 million of repurchases in the third quarter of 2025.

In October 2026, the Board of Directors declared a quarterly cash dividend of $15.63 per share on each of the Series A and Series B mandatory convertible preferred stock, equivalent to approximately $0.78 per depositary share, payable November 15, 2026 to stockholders of record as of November 1, 2026. The board also declared a quarterly cash dividend of $0.22 per share on Class A, Class B, and Class C common stock, payable December 14, 2026 to stockholders of record as of December 7, 2026.

By geography, United States revenues were $67,681 million, up 39% as reported; EMEA revenues were $32,695 million, up 9%; APAC revenues were $19,906 million, up 12%; and Other Americas revenues were $7,101 million, up 17%.