Google Cloud revenue more than doubles as Alphabet tops $127 billion
Alphabet Announces Third Quarter 2026 Results [pdf]
Alphabet's third-quarter 2026 results show revenue up 25% to $127.6 billion, with Google Cloud surging 103% to $30.7 billion on enterprise AI infrastructure and TPU system sales. Search query growth hit its highest rate in five years, the Gemini app reached one billion users, and first-party model APIs now process nearly 32 billion tokens per minute. Operating income rose 30%, though net income fell to $26.2 billion on an $8.2 billion other-expense swing.
We had a strong quarter and are now on a half-trillion dollar revenue run rate.
- cs702
Impressive growth, and even more, ahem, impressive capital spending :-O
According to page 6, year to date in 2026, operations generated $127B in cash, and capital spending on property and equipment was $132B, so year to date, the business consumed $5B.
According to page 8, in the last quarter, operations generated $42B and capital spending was $51B, so over the past three months, the business consumed $9B.
Those figures don't include any capital spending made through off-balance sheet arrangements. No idea what those might be, or for how much Alphabet could be on the hook.
I'm curious to see if all that money invested in infrastructure will pay off. I hope it pays off, for everyone's sake, but hope is not certainty.
- motionlessveloc
One fun line from the results: Google assets are up in one year from $595,281M to $1,003,312M, in other words one trillion dollars. Not market cap, mind you, but assets that could in theory be sold today to raise a trillion dollars in cash.
Liabilities also increased from $180,016M to 325,763M, but in comparison that seems almost puny.
- asb-qwer
Ad sales fall because the AI mania has made it clear that Big Tech does not care about humans, so humans go elsewhere.
Advertisers on the other hand are alerted to viewbotting with increasingly sophisticated AI "users".
It was clear already two years ago that the model of AI generated "content" that is watched by AI viewbots does not work. Of course Big Tech has to steam forward and find out the hard way.
Congrats, you have ruined the entire SV business model with your fantasies derived from cheap, horribly written SciFi novels.
- gigatexal
Meh I bought the dip. Google has such giant moats. I’m still hugely long tech.
- MattCruikshank
...and the stock falls 8% in after-hours trading.