Alphabet Inc. 8-K
Earnings
AI demand and TPU sales drove Google Cloud revenue up 103% Y/Y; higher capital spending pushed free cash flow negative.
Filed 2026-10-28 16:01 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results. Alphabet revenue rose 25% to $127.6B, its 13th consecutive quarter of double-digit growth, with Google Cloud and Search contributing to the expansion. Alphabet said its AI investments are supporting Search query growth and demand for Google Cloud’s AI infrastructure and solutions.
Key Figures
| Metric | Q3 2026 | YTD 2026 |
|---|---|---|
| Revenue | $127.6B, +25% Y/Y | $357.3B, +24% Y/Y |
| Operating income | $40.6B, +30% Y/Y | $121.0B, +30% Y/Y |
| Operating margin | 31.8%, vs 31% | — |
| Net income available to common stockholders | $26.2B, -25% Y/Y | $200.9B, +106% Y/Y |
| Diluted EPS | $2.12, vs $2.87 | $16.33, +104% Y/Y |
| Operating cash flow | $42.3B, -13% Y/Y | $127.1B, +13% Y/Y |
| Free cash flow, non-GAAP | $(9.07)B, vs $24.5B | $(4.80)B, vs $48.7B |
- Google Services revenue grew 11% to $96.3B; Search & other grew 12% to $63.4B, with Search query growth at its highest rate in five years. Google Cloud revenue rose 103% to $30.7B, and operating income increased to $11.1B from $3.59B, driven by enterprise AI infrastructure and solutions, core Google Cloud Platform services, and TPU system sales.
- The Gemini app reached 1B users. Alphabet’s first-party model APIs processed nearly 32B tokens per minute, more than 4x the year-earlier rate; YouTube Music and Premium had more than 150M subscribers, including trials.
- A $8.7B net loss on equity securities reduced net income by $6.7B and diluted EPS by $0.55. Property and equipment purchases rose to $51.4B from $24.0B, contributing to negative free cash flow. At 9/30/2026, cash, cash equivalents and marketable securities totaled $265.1B and long-term debt was $125.1B. Alphabet issued senior unsecured notes for $28.7B in net proceeds for general corporate purposes and issued 36M Class A and Class C shares through its at-the-market program for $12.4B in net proceeds; $27.6B remained available under the program. October dividends included $0.22 per common share, payable 12/14/2026, and $15.63 per mandatory convertible preferred share (≈$0.78 per depositary share), payable 11/15/2026.
Guidance
No guidance in this filing.
Investor Takeaways
- Next-quarter Search query growth and Google Cloud revenue growth will show whether the AI-related momentum described by Alphabet is continuing; sustained query growth and demand for AI infrastructure and solutions would support that case.
- Capital spending and free cash flow are worth tracking together: continued high investment with persistently negative free cash flow would contrast with the quarter’s revenue and operating-income growth.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-28 22:38:32Z