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Alphabet Q3 revenue rises 25% to $127.6 billion on cloud growth

Google Cloud revenue doubled, but net income fell and Alphabet's share price dropped sharply after the results.

By idly intel

2 min read

AI-assisted
Written by idly intel with AI help from several outlets' reporting, and checked before it goes live. How idly works
Image: Social Samosa

Key facts

Story
  • Alphabet's Q3 revenue rose 25% year on year to $127.6 billion, ending 30 September 2026.
  • Google Cloud revenue more than doubled to $30.7 billion, the fastest growth among major segments.
  • Net income fell to $26.2 billion, and the stock dropped nearly 12% after the report.

What's new

Alphabet, the parent company of Google, reported quarterly revenue of $127.6 billion for the three months ended 30 September 2026. That is up 25% from $102.3 billion a year earlier. Operating income rose 30% to $40.6 billion. Google Cloud grew fastest, with revenue more than doubling to $30.7 billion. Cloud's operating income also rose sharply, to $11.1 billion. Growth came from demand for enterprise AI infrastructure and Google's chips, called TPU systems. Net income, however, fell to $26.2 billion from $35 billion.

Why it matters

For Indian readers, the results signal how strongly companies are spending on artificial intelligence. Cloud demand drives the kind of tech services many Indian businesses buy. Search and YouTube advertising also keep growing, which affects brands and creators in India. The lower profit and sharp share price fall show that investors are watching AI costs closely.

What others say

As per Ars Technica, Alphabet admitted that AI-powered search earns less money than traditional search, and the company plans to increase its AI spending again next year. Analysts had expected earnings per share of $3.02, but Alphabet reported $2.12. Ars Technica said Google Cloud beat expectations by about $1 billion. Social Samosa and afaqs reported the same revenue and cloud figures. afaqs quoted CEO Sundar Pichai saying Search query growth was the highest in five years.

What we don't know yet

The sources do not explain the full reasons for the fall in net income. It is also unclear how much Alphabet plans to spend on AI next year.

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Sources: afaqs, Ars Technica, Social Samosa

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