Alphabet has announced its latest financial results reporting a robust 25% revenue increase to reach $127.6 billion, largely propelled by explosive growth in its cloud computing and artificial intelligence (AI) divisions.
Alphabet, the parent company of Google has announced its financial results for the third quarter of 2026 posting a 25% year-on-year increase in total revenue to reach $127.6 billion.
The strong performance was powered by continued momentum in digital advertising, rising search queries and a massive surge in enterprise cloud computing and artificial intelligence services.
The standout performer for the quarter was Google Cloud which saw its revenue more than double surging by 103% year-on-year to $30.7 billion. The explosive growth was fueled by heavy global demand for AI infrastructure, enterprise artificial intelligence solutions and custom Tensor Processing Unit (TPU) systems. Operating income for the cloud division also climbed sharply to $11.1 billion, up from $3.6 billion during the same period last year.
Meanwhile, Alphabet’s core advertising and services business remained robust, supported by Google Search revenue rising 12% to $63.4 billion, backed by the fastest year-on-year growth in search queries seen in five years, YouTube advertising revenue increasing to $11.2 billion up from $10.3 billion and subscriptions and devices revenue growing to $14.3 billion from $12.9 billion.
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Reflecting on the milestone quarter, Sundar Pichai, CEO of Google and Alphabet noted that
“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.”
For the quarter ending September 30, 2026, Alphabet’s operating income rose 30% to $40.6 billion. However, net income available to common stockholders fell to $26.2 billion from $35 billion in the corresponding period of 2025. This decrease was primarily driven by a swing in other non-operating income and expenses which shifted from a net gain last year to a net expense during the quarter.
To support its continued expansion in artificial intelligence and global infrastructure, Alphabet’s workforce grew to 204,757 employees and the board declared a quarterly cash dividend of $0.22 per share, reaffirming confidence in the company’s long-term financial health and growth trajectory.
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