Google owner Alphabet reports 25% revenue growth in Q3 2026

Google owner Alphabet recorded consolidated revenue of $127.58bn in the third quarter ended 30 September 2026, up 25% from a year earlier.

The company said this was its 13th successive quarter of double-digit revenue growth.

Operating income increased 30% year-on-year to $40.58bn, producing an operating margin of 31.8%.

Net income available to common stockholders fell to $26.17bn from $34.98bn in the third quarter of 2025.

Diluted earnings per share declined to $2.12 from $2.87 over the same period last year.

Google Cloud revenue more than doubled to $30.71bn from $15.16bn.

Its operating income rose to $11.12bn, compared with $3.59bn in the previous-year quarter.

Alphabet attributed cloud growth to Google Cloud Platform (GCP) activity in enterprise artificial intelligence (AI) infrastructure, enterprise AI solutions, core GCP services, and Tensor Processing Unit (TPU) system sales.

Google Services generated $96.30bn in revenue, an 11% increase, while operating income rose to $39.16bn from $33.53bn.

Google Search & other revenue increased 12% to $63.35bn.

YouTube advertising revenue reached $11.21bn, compared with $10.26bn a year earlier, while Google Network revenue was $7.46bn versus $7.35bn.

Total Google advertising increased to $82.01bn from $74.18bn.

Revenue from Google subscriptions, platforms, and devices rose to $14.29bn from $12.87bn.

Purchases of property and equipment totalled $51.36bn in the third quarter of 2026, compared with $23.95bn in the third quarter of 2025.

Net cash provided by operating activities fell to $42.29bn from $48.41bn, while free cash flow declined to negative $9.07bn from positive $24.55bn in the third quarter of 2025.

During the nine month period, revenue rose to $357.27bn from $289.01bn and operating income increased to $121.04bn from $93.10bn.

Net income available to common stockholders reached $200.86bn, compared with $97.71bn.

Headcount was 204,757 on 30 September 2026, up from 190,167 a year earlier.

Google and Alphabet CEO Sundar Pichai said: “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.”