Alphabet delivers 25% Q3 revenue growth as profit falls 25%
Key points
- Alphabet (NASDAQ:GOOGL) reported third-quarter 2026 revenue of $125.6 billion, up 25% year over year but below analyst expectations.
- Net income fell 25% to $26.2 billion, while diluted earnings per share dropped 26% to $2.12, below the approximately $2.99 analyst consensus.
- Google Cloud revenue surged 102% to $30.7 billion, exceeding expectations as Alphabet continued investing in AI infrastructure.
Alphabet (NASDAQ:GOOGL) reported third-quarter 2026 revenue of $125.6 billion, up 25% year over year but below analyst expectations, while net income fell to $26.2 billion.
Diluted earnings per share declined 26% to $2.12, missing the analyst consensus of approximately $2.99, despite strong growth in the company's cloud business.
Google Cloud revenue surged 102% year over year to $30.7 billion, exceeding the analyst consensus estimate of $28.8 billion.
Alphabet continued increasing capital expenditure on artificial intelligence infrastructure, including data centers and custom tensor processing units, as it expanded the computing capacity supporting its AI services.
The quarter's results showed contrasting performance across Alphabet's business, with rapid cloud growth alongside lower net income and earnings per share, while investment in AI infrastructure remained a major corporate priority.
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