October 29, 2026 | Tech | By Mahesh
Alphabet reported third-quarter 2026 revenue of $127.6 billion on October 28, up 25% from $102.3 billion a year earlier and roughly in line with the $127.9 billion analysts expected [1][2]. Google Cloud revenue more than doubled to $30.7 billion, while Search and other revenue slowed to 12% growth and capital spending reached a record $51.4 billion [1][3]. FinanceFeeds reports that shares fell about 10% in after-hours trading [3].
- Alphabet reported $127.6 billion in revenue, up 25%, and Google Cloud revenue reached $30.7 billion, up 103%.
- Search and other revenue grew 12%, down from 17% in Q2, and YouTube ads grew 9%, both below analyst estimates.
- Capex hit a record $51.4 billion and free cash flow was negative $9.1 billion, while an $8.7 billion equity loss cut EPS to $2.12.
The quarter in numbers
Operating income was $40.6 billion, up 30%, with an operating margin of 31.8% against 30.5% a year ago [1][2]. Net income to common shareholders fell 25% to $26.2 billion, and diluted EPS was $2.12 against $2.87 a year earlier [1]. The gap comes from an $8.7 billion loss on equity stakes, mainly an unrealized loss on Alphabet's SpaceX holding, compared with a $10.7 billion gain a year earlier [1][3]. Fortune says the loss cut EPS by 55 cents [2].
FinanceFeeds says GAAP EPS missed a consensus of $3.02 by nearly 30% and that some outlets cite an adjusted $2.67 that excludes the equity loss [3]. The quarterly dividend is $0.22 per share, and StockTitan says Alphabet has made no buybacks in 2026 so far [1]. Sundar Pichai said the Gemini app has reached one billion users [1].
Google Cloud: the growth engine
Google Cloud revenue was $30.7 billion, up 103% from $15.2 billion, and the segment's operating margin widened to 36.2% from 23.7% [1][3]. FinanceFeeds puts Cloud operating income at $11.1 billion, more than triple last year [3]. It also reports a backlog of $561 billion, while StockTitan says the release gave no backlog figure and notes that Alphabet reported $514 billion at the end of June [1][3]. The difference between the two accounts is unresolved until Alphabet files its quarterly report.
Growth figures differ across sources. Fortune quotes Pichai citing 48% Cloud growth and a run rate above $70 billion, while StockTitan and FinanceFeeds report 103% year over year [1][2][3]. FinanceFeeds notes that 48% is also the growth rate it gives for Microsoft's Azure, so readers should treat the 48% attribution with caution. FinanceFeeds adds that Alphabet began using third-party compute at the end of Q3 to ease supply limits and plans to ramp it in Q4 [3]. For other recent AI infrastructure coverage, see Nvidia in Talks to Deepen Stake in or Buy Reflection AI.
Search and YouTube: slower than expected
Search and other revenue was $63.35 billion, up 12% after 17% in Q2 and about $1.6 billion below the $65.0 billion consensus [1][3]. YouTube ad revenue was $11.21 billion, up 9% after 13% in Q2, against an estimate of $11.4 billion [1][3]. Google Services revenue came in at $96.3 billion against $98.4 billion expected [3].
| Line | Q3 2026 | Growth | Analyst estimate |
|---|---|---|---|
| Revenue | $127.6B | 25% | $127.9B |
| Google Cloud | $30.7B | 103% | Not stated |
| Search and other | $63.35B | 12% | $65.0B |
| YouTube ads | $11.21B | 9% | $11.4B |
| Google Services | $96.3B | Not stated | $98.4B |
Alphabet blames AI Mode, which it says raises query volume but shows fewer ad-bearing pages, and calls the drag temporary [3]. Whether that holds will show in Q4 results.
Capex, cash flow and guidance
Capital spending was $51.4 billion in the quarter against $23.95 billion a year ago, and $132.0 billion for the first nine months [1]. Free cash flow was negative $9.1 billion, after negative $5.9 billion in Q2 [1][2]. Alphabet's earlier 2026 capex guidance of $195 billion to $205 billion stands, and management has said spending will increase significantly in 2027 without giving a range [1][3]. StockTitan estimates that the guidance implies $63 billion to $73 billion of spending in Q4, which is its own arithmetic and not company guidance [1].
What to treat with caution
The sources disagree on the stock move. Fortune says shares dipped as low as 8% after hours, and FinanceFeeds says 10.4% [2][3]. After-hours moves can reverse in the regular session, and none of these figures cover the market open. The backlog and Cloud growth numbers above also differ between sources. This article reports company results and is not investment advice, and readers should confirm figures against Alphabet's filing, which StockTitan says is due in the coming days [1]. For another recent model launch, see Claude Haiku 5.5 Launch: $0.10 Input, 1M Context, Benchmarks.
Sources
- StockTitan. "Google Earnings: Cloud Revenue Up 103%, Capex Reaches $51.4 Billion." stocktitan.net
- Fortune. "Alphabet's Google Cloud revenue doubles to $31 billion as cash flow stays deep red," October 28, 2026. fortune.com
- FinanceFeeds. "Alphabet Q3: Cloud Doubles to $30.7B, Stock Falls 10%." financefeeds.com
Read More on Depth Grid
- Nvidia in Talks to Deepen Stake in or Buy Reflection AI
- Claude Haiku 5.5 Launch: $0.10 Input, 1M Context, Benchmarks
- Meta Muse Wonder Launch: 1M Context, $4 API Price, Benchmarks
- Mistral Large 4 Preview: 1.05T Open-Weight MoE, Specs and Pricing
Article by Mahesh | Depth Grid
Discussion (0)
Comments are disabled for this post.