Alphabet (GOOG) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 25% YoY to $127.577B; annual revenue run rate reached $500B, with Search and Google Cloud growth.

• Operating income increased 30% to $40.576B and operating margin expanded to 31.8%.

• Google Cloud revenue surged 103% to $30.709B, while AI models, infrastructure and products drove usage and demand.

• Net income available to common stockholders fell 25% to $26.170B and diluted EPS declined 26% to $2.12, amid an $8.221B other expense.

Financial highlights

• Total costs and expenses increased 22% to $87.001B; cost of revenue rose 24% to $51.4B and operating expenses rose 20% to $35.6B.

• Operating cash flow was $42.290B; $51.355B of property and equipment purchases resulted in negative $9.065B free cash flow.

• TTM free cash flow declined 73% YoY to $19.747B; TTM operating cash flow was $179.551B and capex was $159.804B.

• Cash and marketable securities totaled $265.1B; long-term debt was $125.1B at quarter-end.

Outlook and guidance

• FY 2026 CapEx guidance remains $195B-$205B; capital investment is expected to increase significantly in 2027.

• Q4 consolidated revenue faces a larger FX headwind than Q3, primarily in Search and YouTube ads; Search also laps late-2025 acceleration.

• TPU system sales are expected to scale in Q4, with the significant majority of revenue expected in 2027.

• Cloud margins face near-term pressure from third-party compute capacity, higher infrastructure depreciation and data-center energy costs.

• Revenue backlog was $567.7B, including $560.8B for Google Cloud; just over 55% is expected to be recognized within 24 months.