Alphabet Revenue Rises 25% to $127.6 Billion as Google Cloud Grows 103%

Alphabet , Google ’s parent company, reported a 25% year-on-year increase in revenue to $127.6 billion for the third quarter of 2026, driven by growth in Google Search, cloud computing and artificial intelligence (AI) services.

For the quarter ended 30 September 2026, operating income rose 30% to $40.6 billion, while operating margin stood at 31.8%. However, net income available to common stockholders fell to $26.2 billion from $35 billion in the corresponding period of 2025. Diluted earnings per share declined to $2.12 from $2.87.

Alphabet’s net income was affected by a shift in other income and expenses, which moved from a net gain of $12.8 billion in the third quarter of 2025 to a net expense of $8.2 billion in the same period of 2026.

Google Services revenue increased 11% to $96.3 billion, supported by growth in its advertising business. Google Search and other revenue rose 12% to $63.4 billion, with the company reporting that year-on-year growth in Search queries reached its highest level in five years.

YouTube advertising revenue increased to $11.2 billion from $10.3 billion a year earlier, while revenue from Google subscriptions, platforms and devices rose to $14.3 billion from $12.9 billion.

Google Cloud recorded the strongest growth among Alphabet’s major businesses, with revenue more than doubling to $30.7 billion, up 103% year-on-year. The company attributed the performance to demand for AI infrastructure, enterprise AI solutions, Google Cloud Platform services and Tensor Processing Unit (TPU) systems.

Google Cloud operating income also increased significantly, reaching $11.1 billion compared with $3.6 billion in the third quarter of 2025. Google Services operating income rose to $39.2 billion from $33.5 billion.

“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. Gemini 4 Argon and Carbon are now leading at the frontier. Overall, our first-party model APIs are now processing nearly 32 billion tokens per minute, more than four times what we processed a year ago. On top of that, the Gemini app has reached one billion users-making it the fastest-growing product in Google’s history-and we surpassed 150 million YouTube Music and Premium subscribers globally, including trials. We’re excited by the range of big opportunities ahead of us.”

– Sundar Pichai, CEO, Google and Alphabet

Alphabet’s workforce increased to 204,757 employees at the end of the quarter, compared with 190,167 a year earlier. The company also reported that expenses associated with Alphabet-level activities, which primarily reflect shared AI research and development, rose to $7.7 billion from $4.5 billion.

During the quarter, Alphabet raised $12.4 billion in net proceeds through the issuance of Class A and Class C shares under its at-the-market programme. It also issued senior unsecured notes that generated $28.7 billion in net proceeds for general corporate purposes.

In October, Alphabet’s board declared a quarterly dividend of $0.22 per share for its Class A, Class B and Class C stock, payable on 14 December 2026 to shareholders of record as of 7 December 2026. The company also declared dividends on its Series A and Series B mandatory convertible preferred stock.

Alphabet’s third-quarter results highlight the growing contribution of AI infrastructure and cloud services to its business, alongside continued growth in search and digital advertising. However, the decline in net income reflects the impact of the significant swing in other income and expenses during the period.