Alphabet Records 25 Percent Year-on-Year Revenue Surge
(MENAFN) US technology giant Alphabet, Google’s parent company, posted a 25% year-on-year jump in revenue to $127.6 billion for the July-September quarter on Wednesday, propelled by a surge in its cloud computing business.
In results for the third quarter of 2026, the company said revenue climbed from $102.3 billion a year earlier, extending its run of double-digit growth to 13 consecutive quarters. Operating income rose 30% to $40.6 billion, up from $31.2 billion, lifting the operating margin to 31.8%, according to the company’s statement.
Profit moved the other way. Net income fell to $26.5 billion from roughly $35 billion in the same quarter last year. Net income available to common shareholders dropped to $26.2 billion from $35 billion, and diluted earnings per share slid to $2.12 from $2.87.
The decline traces to non-operating items. Alphabet booked a net loss of $8.2 billion in other income and expenses, against a gain of $12.8 billion a year earlier. Losses on equity securities totaled $8.7 billion during the quarter, cutting net income by $6.7 billion after taxes.
Cloud led the charge. Google Cloud revenue more than doubled, rising 103% to $30.7 billion from $15.2 billion, fueled by demand for artificial intelligence infrastructure, AI solutions and core cloud services. The division’s operating income leapt to $11.1 billion from $3.6 billion.
Google Services revenue grew 11% to $96.3 billion on gains in search, advertising and subscriptions. Revenue from Google Search and other services increased 12% to $63.4 billion, while YouTube advertising revenue reached $11.2 billion, up from $10.3 billion. Revenue from Google subscriptions, platforms and devices rose to $14.3 billion from $12.9 billion.
Alphabet CEO Sundar Pichai said the company is benefiting from rising demand for its AI products and services.
“We had a strong quarter and are now on a half-trillion dollar revenue run rate. Our deep full stack approach is driving momentum across the business, with Alphabet revenues growing 25% year-over year,” Pichai said.
“Our AI investments are driving overall Search query growth, including commercial queries. In fact, our year-over-year query growth rate is the highest it’s been in the last five years,” he added.
Pichai said Google Cloud’s results were backed by demand for AI infrastructure, AI solutions and tensor processing unit systems.
He also announced that the Gemini app has reached 1 billion users, calling it the fastest-growing product in Google’s history. The company’s first-party AI models are processing nearly 32 billion tokens per minute through application programming interfaces, more than four times the level a year earlier, he said.
YouTube Music and Premium have passed 150 million subscribers worldwide, including trial users, Pichai added.
Elsewhere, Alphabet’s Other Bets segment reported revenue of $372 million, compared with $344 million a year earlier, while its operating loss widened to $2 billion.
In results for the third quarter of 2026, the company said revenue climbed from $102.3 billion a year earlier, extending its run of double-digit growth to 13 consecutive quarters. Operating income rose 30% to $40.6 billion, up from $31.2 billion, lifting the operating margin to 31.8%, according to the company’s statement.
Profit moved the other way. Net income fell to $26.5 billion from roughly $35 billion in the same quarter last year. Net income available to common shareholders dropped to $26.2 billion from $35 billion, and diluted earnings per share slid to $2.12 from $2.87.
The decline traces to non-operating items. Alphabet booked a net loss of $8.2 billion in other income and expenses, against a gain of $12.8 billion a year earlier. Losses on equity securities totaled $8.7 billion during the quarter, cutting net income by $6.7 billion after taxes.
Cloud led the charge. Google Cloud revenue more than doubled, rising 103% to $30.7 billion from $15.2 billion, fueled by demand for artificial intelligence infrastructure, AI solutions and core cloud services. The division’s operating income leapt to $11.1 billion from $3.6 billion.
Google Services revenue grew 11% to $96.3 billion on gains in search, advertising and subscriptions. Revenue from Google Search and other services increased 12% to $63.4 billion, while YouTube advertising revenue reached $11.2 billion, up from $10.3 billion. Revenue from Google subscriptions, platforms and devices rose to $14.3 billion from $12.9 billion.
Alphabet CEO Sundar Pichai said the company is benefiting from rising demand for its AI products and services.
“We had a strong quarter and are now on a half-trillion dollar revenue run rate. Our deep full stack approach is driving momentum across the business, with Alphabet revenues growing 25% year-over year,” Pichai said.
“Our AI investments are driving overall Search query growth, including commercial queries. In fact, our year-over-year query growth rate is the highest it’s been in the last five years,” he added.
Pichai said Google Cloud’s results were backed by demand for AI infrastructure, AI solutions and tensor processing unit systems.
He also announced that the Gemini app has reached 1 billion users, calling it the fastest-growing product in Google’s history. The company’s first-party AI models are processing nearly 32 billion tokens per minute through application programming interfaces, more than four times the level a year earlier, he said.
YouTube Music and Premium have passed 150 million subscribers worldwide, including trial users, Pichai added.
Elsewhere, Alphabet’s Other Bets segment reported revenue of $372 million, compared with $344 million a year earlier, while its operating loss widened to $2 billion.
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