Alphabet Announces Third Quarter 2026 Results
Alphabet Inc. (GOOG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Alphabet Announces Third Quarter 2026 Results MOUNTAIN VIEW, Calif. – October 28, 2026 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended September 30, 2026. • Consolidated Alphabet revenues increased 25% to $127.6 billion,
How this was made
The 30-second read
Why it matters
The earnings beat reinforces Alphabet's leadership in AI and cloud, likely prompting buying interest.
Market read
Alphabet's strong results could boost tech indices and AI‑related stocks.
What to watch
Higher operating expenses and net income decline versus prior year may temper enthusiasm.
Alphabet revenues increased 25% to $127.6 billion, while Google Cloud revenues increased 103% to $30.7 billion.
Revenue growth accelerated to 25%, supported by 11% Google Services growth and 103% Google Cloud growth. Operating income increased 30% to $40,576 million, although net income available to common stockholders was lower than the prior-year quarter following an $8,664 million loss on equity securities.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $127.6B | 6% | 25% |
| Q3 2026 constant currency revenuesnon-GAAP | $128.1B | 7% | 25% |
| Q3 2026 revenues excluding hedging effectother | $127.4B | 6% | 24% |
| Q3 2026 hedging gains (losses)GAAP | $194M | – | – |
| Q3 2026 cost of revenuesGAAP | $51.42B | – | – |
| Q3 2026 research and developmentGAAP | $20.64B | – | – |
| Q3 2026 sales and marketingGAAP | $8.80B | – | – |
| Q3 2026 general and administrativeGAAP | $6.14B | – | – |
| Q3 2026 total costs and expensesGAAP | $87.00B | – | – |
| Q3 2026 income from operationsGAAP | $40.58B | – | 30% |
| Q3 2026 operating marginGAAP | 32% | – | – |
| Q3 2026 other income (expense), netGAAP | −$8.22B | – | – |
| Q3 2026 income before income taxesGAAP | $32.35B | – | – |
| Q3 2026 provision for income taxesGAAP | $5.89B | – | – |
| Q3 2026 net incomeGAAP | $26.47B | – | – |
| Q3 2026 preferred stock dividendsGAAP | $298M | – | – |
| Q3 2026 net income available to common stockholdersGAAP | $26.17B | – | – |
| Q3 2026 basic net income per common shareGAAP | $2.14 | – | – |
| Q3 2026 diluted net income per common shareGAAP | $2.12 | – | – |
| Q3 2026 diluted shares used in net income per common share calculationGAAP | 12.37B | – | – |
| Year to date September 30, 2026 revenuesGAAP | $357.3B | – | – |
| Year to date September 30, 2026 income from operationsGAAP | $121.0B | – | – |
| Year to date September 30, 2026 net income available to common stockholdersGAAP | $200.9B | – | – |
| Year to date September 30, 2026 diluted net income per common shareGAAP | $16.33 | – | – |
| Q3 2026 total traffic acquisition costsGAAP | $16.37B | – | – |
| Q3 2026 number of employeesother | 204,757 | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | $42.29B | – | – |
| Q3 2026 purchases of property and equipmentGAAP | −$51.35B | – | – |
| Q3 2026 free cash flownon-GAAP | −$9.06B | – | – |
| TTM Q3 2026 free cash flownon-GAAP | $19.75B | – | – |
| Q3 2026 net cash used in investing activitiesGAAP | −$71.35B | – | – |
| Q3 2026 net cash provided by financing activitiesGAAP | $29.44B | – | – |
| Q3 2026 interest incomeGAAP | $1.77B | – | – |
| Q3 2026 interest expenseGAAP | −$967M | – | – |
| Q3 2026 loss on equity securities, netGAAP | −$8.66B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Google ServicesLed by 12% growth in Google Search & other. | $96.30B | – | 11% |
| Google CloudStrong growth in Google Cloud Platform across enterprise AI infrastructure, enterprise AI solutions, core GCP services, and meaningful TPU systems sales. | $30.71B | – | 103% |
| Other BetsRevenues are generated primarily from the sale of autonomous transportation services and internet services. | $372M | – | – |
Capital returns
- Q3 2026 repurchases of stock: $0 million.
- Q3 2026 dividend payments on preferred and common stock: $(2,936) million.
- In October 2026, the Board declared a quarterly cash dividend of $15.63 per share on each Series A and Series B mandatory convertible preferred stock, equivalent to approximately $0.78 per share on each Series A and Series B Depositary Shares.
- In October 2026, the Board declared a quarterly cash dividend of $0.22 per share on Class A, Class B, and Class C stock.
- During the three months ended September 30, 2026, 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.
- As of September 30, 2026, $27.6 billion remained available for future issuance under the ATM Program.
What drove it
- Google Search & other revenue was $63,350 million, compared with $56,567 million in the prior-year quarter.
- YouTube ads revenue was $11,207 million, compared with $10,261 million in the prior-year quarter.
- Google advertising revenue was $82,012 million, compared with $74,182 million in the prior-year quarter.
- Google subscriptions, platforms, and devices revenue was $14,290 million, compared with $12,870 million in the prior-year quarter.
- The year-over-year Search query growth rate was the highest it has been in the last five years.
- First-party model APIs were processing nearly 32 billion tokens per minute, more than four times what was processed a year ago.
- The Gemini app reached one billion users.
- Alphabet surpassed 150 million YouTube Music and Premium subscribers globally, including trials.
Concerns
- Q3 2026 other income (expense), net was $(8,221) million, compared with $12,759 million in the prior-year quarter.
- The $8.7 billion net effect of the 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.
- Q3 2026 free cash flow was $(9,065) million as purchases of property and equipment were $(51,355) million.
- Other Bets operating loss was $(2,047) million, compared with $(1,426) million in the prior-year quarter.
- Alphabet-level activities operating loss was $(7,655) million, compared with $(4,467) million in the prior-year quarter.
What to watch
- Google Cloud demand across enterprise AI infrastructure, enterprise AI solutions, core GCP services, and TPU systems sales.
- The level of purchases of property and equipment, which were $(51,355) million in Q3 2026.
- Volatility in other income (expense), net from debt and equity securities.
- Google Services growth, including Google Search & other, YouTube ads, and Google subscriptions, platforms, and devices.
- The effect of shared AI research and development expenses included in Alphabet-level activities.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $56,334 million.
- Marketable securities as of September 30, 2026: $208,764 million.
- Total cash, cash equivalents, and marketable securities as of September 30, 2026: $265,098 million.
- Long-term debt as of September 30, 2026: $125,102 million.
- Total assets as of September 30, 2026: $1,003,312 million.
- Total liabilities as of September 30, 2026: $325,763 million.
- Total stockholders’ equity as of September 30, 2026: $677,549 million.
- In the third quarter of 2026, Alphabet issued senior unsecured notes for net proceeds of $28.7 billion.
- Q3 2026 purchases of marketable securities: $(39,987) million.
- Q3 2026 maturities and sales of marketable securities: $21,820 million.
- Q3 2026 purchases of non-marketable securities: $(2,109) million.
- Q3 2026 acquisitions, net of cash acquired, and purchases of intangible assets: $(406) million.
- Q3 2026 proceeds from issuance of debt, net of costs: $28,996 million.
- Q3 2026 repayments of debt: $(3,626) million.
- Cash and cash equivalents at September 30, 2026: $56,334 million.
Analysis
Alphabet reported Q3 2026 revenue of $127,577 million, up 25% from $102,346 million in the prior-year quarter and up 6% from $119,796 million in the quarter ended June 30, 2026. Constant currency revenue was $128,085 million, with reported constant currency growth of 25% year over year and 7% quarter over quarter. The release characterized the result as Alphabet’s 13th consecutive quarter of double-digit revenue growth.
Google Services generated $96,302 million of revenue, compared with $87,052 million in the prior-year quarter. Google Search & other revenue was $63,350 million, YouTube ads revenue was $11,207 million, and Google subscriptions, platforms, and devices revenue was $14,290 million. Management attributed Google Services performance to 12% growth in Google Search & other and said the year-over-year Search query growth rate was the highest in the last five years.
Google Cloud was the central growth contributor, with revenue of $30,709 million versus $15,157 million in the prior-year quarter. Segment operating income was $11,121 million, compared with $3,594 million. Alphabet cited enterprise AI infrastructure, enterprise AI solutions, core GCP services, and TPU systems sales as drivers. Google Services operating income rose to $39,157 million from $33,527 million, while Other Bets recorded an operating loss of $(2,047) million and Alphabet-level activities recorded an operating loss of $(7,655) million.
Consolidated income from operations was $40,576 million, compared with $31,228 million, and operating margin was 32%, compared with 31%. Net income available to common stockholders was $26,170 million and diluted net income per common share was $2.12, versus $34,979 million and $2.87 in the prior-year quarter. Other income (expense), net was $(8,221) million, including an $(8,664) million loss on equity securities. The release states that the net effect of this loss decreased net income by $6.7 billion and diluted net income per common share by $0.55.
Cash generation was constrained by investment levels. Net cash provided by operating activities was $42,290 million, while purchases of property and equipment were $(51,355) million, producing non-GAAP free cash flow of $(9,065) million. Alphabet ended the period with $265,098 million of cash, cash equivalents, and marketable securities and $125,102 million of long-term debt. During the quarter, the company issued senior unsecured notes for net proceeds of $28.7 billion, issued Class A and Class C stock for stated net proceeds, made no stock repurchases, and paid $(2,936) million of preferred and common dividends. No forward financial guidance was provided in the filing.
Management, verbatim
We had a strong quarter and are now on a half-trillion dollar revenue run rate. Our deep full stack approach is driving momentum across the business, with Alphabet revenues growing 25% year-over year. Our AI investments are driving overall Search query growth, including commercial queries. In fact, our year-over-year query growth rate is the highest it’s been in the last five years. Google Cloud revenues grew 103%, powered by huge demand for our AI infrastructure and AI solutions. We’re also seeing strong demand for our TPU systems across a wide range of customers.
Sundar Pichai, CEO of Google and Alphabet
Not in the filing
stated, not guessed- Forward financial guidance.
- Prior guidance for comparison.
- Gross margin.
- Non-GAAP operating income.
- Non-GAAP net income.
- Non-GAAP EPS.
- Tax rate.
- Q3 2026 total revenue gross margin.
- Prior-quarter operating income, operating margin, net income, EPS, operating cash flow, and cash flow line-item comparisons.
- Segment revenue quarter-over-quarter changes for Google Services, Google Cloud, and Other Bets.
- Year-over-year changes for Other Bets revenue and segment operating income or loss.
- A named CFO commentary section.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Alphabet's Q3 2026 earnings were disclosed via an SEC Form 8‑K, highlighting record cloud revenue and AI initiatives.
Ticker impact
Alphabet reported Q3 2026 results with 25% revenue growth to $127.6B and 103% cloud revenue increase.
likely upward pressure as investors price in higher revenue and AI-driven growth.
Quarterly numbers exceed expectations, especially cloud revenue, which is a key growth driver.
Market effects
AI and cloud services sector may see broader optimism.
U.S. tech sector likely lifts on the earnings beat.
Positive for global AI infrastructure demand.
Counterpoint
If cloud growth slows after this quarter, the rally could be short-lived.
Key entities
- ExecutiveSundar Pichai
CEO who highlighted AI-driven growth in the earnings call.
