Alphabet Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenues increased 25% year-over-year to $127.6 billion, marking the 13th consecutive quarter of double-digit revenue growth.
• Google Services revenues grew 11% year-over-year to $96.3 billion.
• Google Cloud revenues increased 103% year-over-year to $30.7 billion.
• Consolidated operating income increased 30% to $40.6 billion, with an operating margin of 31.8%.
• Net income available to common stockholders was $26.2 billion, resulting in diluted earnings per share (EPS) of $2.12.
• Other income (expense), net, turned to a loss of $8.2 billion in Q3 2026, compared to a gain of $12.8 billion in Q3 2025, primarily driven by an $8.7 billion loss on equity securities.
• Total assets grew to $1.00 trillion as of September 30, 2026, from $595.3 billion as of December 31, 2025.
• Long-term debt increased to $125.1 billion as of September 30, 2026, from $46.5 billion as of December 31, 2025.
• Deferred revenue increased to $9.4 billion as of September 30, 2026, from $6.6 billion as of December 31, 2025.
• Net cash provided by operating activities was $42.3 billion for the quarter ended September 30, 2026, compared to $48.4 billion in the prior year period.
• Trailing twelve months (TTM) free cash flow was $19.7 billion for the quarter ended September 30, 2026.

Guidance and Future Outlook:

• The company reported a half-trillion dollar revenue run rate.
• Management expressed excitement regarding a range of big opportunities ahead.
• The company noted that its deep full-stack approach is driving momentum across the business.

Business Segments and Product Lines:

• Google Search & other revenues grew 12% year-over-year, with the year-over-year search query growth rate reaching its highest level in the last five years.
• Google Cloud growth was led by strong demand for Google Cloud Platform (GCP) enterprise AI infrastructure, enterprise AI solutions, core GCP services, and TPU systems sales.
• First-party model APIs are now processing nearly 32 billion tokens per minute, more than four times the volume processed a year ago.
• Gemini 4 Argon and Carbon are now leading at the frontier.
• The Gemini app reached one billion users, becoming the fastest-growing product in Google's history.
• YouTube Music and Premium subscribers surpassed 150 million globally, including trials.
• Google advertising revenues increased to $82.0 billion from $74.2 billion in the prior year period.
• Google subscriptions, platforms, and devices revenues increased to $14.3 billion from $12.9 billion in the prior year period.
• Other Bets revenues were $372 million, compared to $344 million in the prior year period.

Market and Competitive Landscape:

• Search query growth is being driven by AI investments, including commercial queries.
• There is huge demand for AI infrastructure and AI solutions across a wide range of customers.
• TPU systems are seeing strong demand across a wide range of customers.

Risks and Challenges:

• Fluctuations in the value of equity securities may affect other income (expense) and contribute to volatility in future periods.
• Forward-looking statements involve risks and uncertainties, including those detailed in the company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Management Commentary and Tone:

• Sundar Pichai, CEO of Google and Alphabet, stated, "We had a strong quarter and are now on a half-trillion dollar revenue run rate."
• Management highlighted that AI investments are driving overall Search query growth.
• The tone was confident, emphasizing that the deep full-stack approach is driving momentum and expressing excitement about future opportunities.

Other Key Points:

• During the quarter, the company issued 12 million shares of Class A stock and 24 million shares of Class C stock under its At-the-Market Program, generating net proceeds of $4.3 billion and $8.1 billion, respectively.
• $27.6 billion remained available for future issuance under the ATM Program as of September 30, 2026.
• The company issued senior unsecured notes for net proceeds of $28.7 billion in the third quarter of 2026 for general corporate purposes.
• The Board of Directors declared a quarterly cash dividend of $0.22 per share on Class A, Class B, and Class C stock, payable on December 14, 2026.
• A quarterly cash dividend of $15.63 per share on Series A and Series B mandatory convertible preferred stock was declared, payable on November 15, 2026.
• The number of employees increased to 204,757 as of September 30, 2026, from 190,167 as of September 30, 2025.
• Capital expenditures (purchases of property and equipment) were $51.4 billion for the quarter ended September 30, 2026, compared to $24.0 billion in the prior year period.