The key facts

  • Alphabet's revenue grew 25% to $127.6 billion — the 13th consecutive quarter of double-digit growth
  • Google Cloud doubled its revenue to $30.7 billion amid demand for AI infrastructure
  • Net profit fell to $26.5 billion due to an $8.2 billion loss under other income and expenses

Revenue and profit

Alphabet, Google's parent company, has reported its results for the third quarter of 2026: revenue grew 25% year-on-year — from $102.3 billion to $127.6 billion, marking the 13th consecutive quarter of double-digit growth. This was reported by Anadolu citing the company's financial statements.

Cloud doubles revenue, net profit declines

The main growth driver was the cloud division: Google Cloud revenue rose 103% — from $15.2 billion to $30.7 billion — while its operating profit increased from $3.6 billion to $11.1 billion. The company attributes this to demand for AI infrastructure, AI solutions, and its own cloud services. Google Services grew 11% to $96.3 billion: Search and other services brought in $63.4 billion (+12%), YouTube advertising earned $11.2 billion versus $10.3 billion a year earlier, and subscriptions, platforms, and devices brought in $14.3 billion versus $12.9 billion. The Other Bets segment earned $372 million, but its operating loss widened to $2 billion.

Why net profit fell

Despite operating profit growing 30% to $40.6 billion (operating margin of 31.8%), net profit declined to $26.5 billion from roughly $35 billion a year earlier, and diluted earnings per share fell to $2.12 from $2.87. The reason was an $8.2 billion loss under other income and expenses, compared with a $12.8 billion profit a year earlier: losses on investments in equity securities amounted to $8.7 billion and, after taxes, reduced net profit by $6.7 billion.

Statements from management

Alphabet CEO Sundar Pichai called the quarter strong and noted that the company has reached an annual revenue run rate of half a trillion dollars. According to him, the growth rate in the number of search queries is the highest in the past five years, including commercial queries. Pichai also said that the Gemini app has reached 1 billion users and has become the fastest-growing product in Google's history, the company's own AI models process nearly 32 billion tokens per minute via API — more than four times more than a year earlier — and YouTube Music and Premium have surpassed 150 million subscribers, including the trial period.