Global Finance News
01 Nov 2026, 11:02
Alphabet Q3 Revenue Jumps 25% as Google Cloud Growth Surges on AI Demand
Alphabet (NASDAQ: GOOG, GOOGL) reported a strong third quarter of 2026, with revenue rising 25% year over year to $127.6 billion, marking its 13th consecutive quarter of double-digit growth.
Google Services revenue increased 11% to $96.3 billion. Google Search & other revenue rose 12% to $63.4 billion, with management saying year-over-year Search query growth reached its fastest pace in five years. YouTube advertising revenue increased to $11.2 billion from $10.3 billion.
Google Cloud was the standout performer, with revenue more than doubling to $30.7 billion from $15.2 billion. Growth was driven by enterprise AI infrastructure, AI solutions, core Google Cloud Platform services and TPU systems. Cloud operating income surged to $11.1 billion from $3.6 billion.
Alphabet’s operating income increased 30% to $40.6 billion, with operating margin improving to 31.8%. However, net income fell to $26.2 billion from $35.0 billion, while diluted EPS declined to $2.12 from $2.87, largely reflecting an $8.2 billion net other expense compared with $12.8 billion of other income a year earlier.
AI adoption continued to accelerate. Alphabet said its first-party model APIs are processing nearly 32 billion tokens per minute, more than four times the year-ago level, while the Gemini app has surpassed one billion users.
Overall, the quarter showed exceptionally strong momentum in Google Cloud and continued resilience in Search, with AI investment translating into faster revenue growth and sharply higher cloud profitability despite the year-over-year decline in reported net income.
Alphabet (NASDAQ: GOOG, GOOGL) reported a strong third quarter of 2026, with revenue rising 25% year over year to $127.6 billion, marking its 13th consecutive quarter of double-digit growth.
Google Services revenue increased 11% to $96.3 billion. Google Search & other revenue rose 12% to $63.4 billion, with management saying year-over-year Search query growth reached its fastest pace in five years. YouTube advertising revenue increased to $11.2 billion from $10.3 billion.
Google Cloud was the standout performer, with revenue more than doubling to $30.7 billion from $15.2 billion. Growth was driven by enterprise AI infrastructure, AI solutions, core Google Cloud Platform services and TPU systems. Cloud operating income surged to $11.1 billion from $3.6 billion.
Alphabet’s operating income increased 30% to $40.6 billion, with operating margin improving to 31.8%. However, net income fell to $26.2 billion from $35.0 billion, while diluted EPS declined to $2.12 from $2.87, largely reflecting an $8.2 billion net other expense compared with $12.8 billion of other income a year earlier.
AI adoption continued to accelerate. Alphabet said its first-party model APIs are processing nearly 32 billion tokens per minute, more than four times the year-ago level, while the Gemini app has surpassed one billion users.
Overall, the quarter showed exceptionally strong momentum in Google Cloud and continued resilience in Search, with AI investment translating into faster revenue growth and sharply higher cloud profitability despite the year-over-year decline in reported net income.
