Alphabet Third Quarter 2026 Results

Key insights

7 takeaways

01
Alphabet’s Q3 2026 consolidated revenue grew 25% year-over-year to $127.6 billion, marking the 13th consecutive quarter of double-digit growth.See it on page 1
02
Google Cloud revenue surged 103% to $30.7 billion, driven primarily by enterprise demand for AI infrastructure, AI solutions, and TPU systems.See it on page 1
03
Operating income rose 30% to $40.6 billion, achieving an operating margin of 31.8% and net income of $26.2 billion.See it on page 1
04
Google Services revenue increased 11% to $96.3 billion, supported by a 12% rise in Search revenue and the highest year-over-year Search query growth rate in five years.See it on page 1
05
The Gemini application reached one billion users, while YouTube Music and Premium surpassed 150 million global subscribers.See it on page 1
06
Capital expenditures reached $51.4 billion for the quarter, supported by a strong liquidity position of $265.1 billion in cash and marketable securities.See it on page 6
07
U.S. revenue grew 39% year-over-year to $67.7 billion, while the company's total workforce expanded to 204,757 employees.See it on page 2

Summary

Alphabet’s financial results for the third quarter of 2026 demonstrate significant growth, characterized by a 25% year-over-year increase in consolidated revenue to $127.6 billion. This performance marks the company’s 13th consecutive quarter of double-digit revenue growth, supported by robust demand across its core business segments. Operating income rose by 30% to $40.6 billion, resulting in an operating margin of 31.8%. Net income available to common stockholders reached $26.2 billion, with diluted earnings per share reported at $2.12.

The primary growth driver was Google Cloud, which experienced a 103% revenue surge to $30.7 billion, fueled by high demand for enterprise AI infrastructure, AI solutions, and TPU systems. Google Services also contributed positively, with revenues increasing 11% to $96.3 billion. This segment benefited from a 12% rise in Google Search and other revenues, bolstered by the highest year-over-year Search query growth rate observed in the last five years. Additionally, the Gemini application reached one billion users, and YouTube Music and Premium surpassed 150 million global subscribers.

Geographically, the United States remained a dominant market, contributing $67.7 billion in revenue, a 39% increase compared to the same period in 2025. Other regions, including EMEA and APAC, also saw growth, though at more moderate rates. The company’s workforce expanded to 204,757 employees, and it continued to invest heavily in capital expenditures, which totaled $51.4 billion for the quarter. Alphabet maintains a strong liquidity position, with $265.1 billion in total cash, cash equivalents, and marketable securities as of September 30, 2026, and it continues to utilize both GAAP and non-GAAP measures to evaluate its ongoing operational performance and strategic investments.