Alphabet Reports Q3 2026 Revenue of $127.6 Billion, Up 25%

Alphabet Inc. (NASDAQ: GOOG, GOOGL) has released its financial results for the quarter ending September 30, 2026, revealing a significant revenue increase of 25% to $127.6 billion. This marks the company's 13th consecutive quarter of double-digit revenue growth, showcasing robust performance across its various business segments.

The revenue from Google Services rose by 11% to $96.3 billion, driven primarily by a 12% increase in Google Search and other services. This growth is notable as it reflects the highest year-over-year growth rate in search queries in the past five years.

In addition, Google Cloud experienced remarkable growth, with revenues soaring by 103% to $30.7 billion. This surge is attributed to increased demand for Google Cloud Platform (GCP), particularly in enterprise AI infrastructure and solutions, along with core GCP services. The sales of Tensor Processing Units (TPUs) also contributed significantly to this revenue growth.

Operating income for Alphabet increased by 30%, resulting in an operating margin of 31.8%. The net income available to common stockholders reached $26.2 billion, translating to an earnings per share (EPS) of $2.12. CEO Sundar Pichai commented on the strong quarter, highlighting that the company is now on a half-trillion dollar revenue run rate. He noted that Alphabet's investments in AI are driving growth in search queries, including commercial queries, and emphasized the strong demand for their AI infrastructure and solutions.

Why Pichai Matters Here

Pichai also mentioned that the Gemini app has achieved one billion users, making it the fastest-growing product in Google's history. Furthermore, the company surpassed 150 million subscribers for YouTube Music and Premium globally, including trials.

Alphabet's Financial Maneuvers and Upcoming Dividends

During the third quarter, Alphabet issued 12 million shares of Class A stock and 24 million shares of Class C stock, raising net proceeds of $4.3 billion and $8.1 billion, respectively. As of September 30, 2026, there remains $27.6 billion available for future issuance under the At-the-Market (ATM) program. The company also issued senior unsecured notes for net proceeds of $28.7 billion for general corporate purposes.

In October 2026, Alphabet's Board of Directors declared a quarterly cash dividend of $15.63 per share on its Series A and Series B mandatory convertible preferred stock, and a quarterly cash dividend of $0.22 per share on its Class A, Class B, and Class C stock, payable in November and December 2026, respectively.