Alphabet Q3 Revenue Rises 25% as Google Cloud Revenue Jumps 103%

Alphabet on October 28, 2026 reported third-quarter revenue of US$127.577 billion, up 25% from $102.346 billion a year earlier, as Google Cloud revenue rose 103% to $30.709 billion, according to the company’s earnings release for the quarter ended September 30, 2026.

Consolidated operating income increased 30% to $40.576 billion and operating margin was 31.8%, compared with 31% in the third quarter of 2025. Net income available to common stockholders was $26.170 billion, or $2.12 per diluted share, versus $34.979 billion, or $2.87 per share, a year earlier. The company said the quarter marked its 13th consecutive quarter of double-digit revenue growth.

Other income (expense), net swung to an expense of $8.221 billion from income of $12.759 billion a year earlier. Within that line, the company recorded a net loss on equity securities of $8.664 billion, versus a net gain of $10.734 billion in the prior-year quarter. A footnote states that the $8.7 billion equity-securities loss reduced the provision for income taxes by $1.9 billion, net income by $6.7 billion and diluted earnings per share by $0.55. Interest income was $1.768 billion against interest expense of $967 million. Income before income taxes was $32.355 billion versus $43.987 billion, the tax provision was $5.887 billion versus $9.008 billion, and net income was $26.468 billion, a figure that includes $298 million of preferred stock dividends.

Segment Results

Google Services revenue rose 11% to $96.302 billion. Within the segment, Google Search and other revenue grew 12% to $63.350 billion, YouTube advertising revenue was $11.207 billion versus $10.261 billion, Google Network revenue was $7.455 billion versus $7.354 billion, and subscriptions, platforms and devices revenue was $14.290 billion versus $12.870 billion. Total Google advertising revenue was $82.012 billion versus $74.182 billion, and total traffic acquisition costs were $16.366 billion versus $14.876 billion. Google Services operating income was $39.157 billion versus $33.527 billion.

Google Cloud revenue increased 103% to $30.709 billion from $15.157 billion. The company described the result as record growth led by Google Cloud Platform across enterprise AI infrastructure and enterprise AI solutions as well as core GCP services, and said TPU systems sales were also a meaningful contributor to revenue growth. Google Cloud operating income was $11.121 billion versus $3.594 billion.

Other Bets revenue was $372 million versus $344 million, with an operating loss of $2.047 billion versus $1.426 billion. Alphabet-level activities, which the release states primarily reflect expenses related to shared AI research and development, posted a loss of $7.655 billion versus $4.467 billion. Hedging gains were $194 million versus a loss of $207 million.

By geography, US revenue rose 39% to $67.681 billion, EMEA revenue rose 9% to $32.695 billion, APAC revenue rose 12% to $19.906 billion and Other Americas revenue rose 17% to $7.101 billion. On a constant-currency basis, total revenue growth was 25%, the same as the reported rate.

Sundar Pichai, CEO of Google and Alphabet (GOOG ), said in the release: “We had a strong quarter and are now on a half-trillion dollar revenue run rate.” He said the company’s AI investments are driving overall Search query growth, including commercial queries, with the year-over-year query growth rate the highest it has been in the last five years. Pichai said first-party model APIs now process nearly 32 billion tokens per minute, more than four times the level of a year ago, and called the company’s Gemini 4 Argon and Carbon models “leading at the frontier.” He also said the Gemini app has reached one billion users, which he described as the fastest-growing product in Google’s history, and that the company surpassed 150 million YouTube Music and Premium subscribers globally, including trials.

Financing Activity and Dividends

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. Long-term debt stood at $125.102 billion at September 30, 2026, versus $46.547 billion at December 31, 2025. The cash flow statement shows the company raised an additional $19.063 billion in net proceeds from the issuance of mandatory convertible preferred stock during the first nine months of 2026.

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 stock, payable December 14, 2026 to stockholders of record as of December 7, 2026.

Net cash provided by operating activities was $42.290 billion versus $48.414 billion a year earlier, while purchases of property and equipment were $51.355 billion versus $23.953 billion. Free cash flow, which the company defines as operating cash flow less capital expenditures, was negative $9.065 billion for the quarter, and trailing-twelve-month free cash flow was $19.747 billion. Alphabet made no share repurchases during the quarter, versus $11.504 billion of repurchases a year earlier, and paid $2.936 billion in dividends on preferred and common stock.

Cash, cash equivalents and marketable securities totaled $265.098 billion at September 30, 2026, versus $126.843 billion at December 31, 2025. Total assets were $1.003 trillion versus $595.281 billion, and the company employed 204,757 people versus 190,167 a year earlier. For the first nine months of 2026, revenue was $357.269 billion versus $289.007 billion, and diluted earnings per share were $16.33 versus $7.99.