Alphabet reported third-quarter 2026 revenue of $127.6 billion, up 25% year over year, as demand grew for custom hardware and cloud services amid scaling AI tools. Google Cloud revenue rose 103% to $30.7 billion, with elevated demand for TPUs and 18 product lines each generating over $1 billion in annual revenue. Search query growth reached its highest rate in five years as users adopted generative AI tools, and ads are being integrated into these search interfaces. Full-year 2026 capex guidance of $195–205 billion was unchanged, with 65% of infrastructure spend going to servers and networking hardware with estimated six-year useful lives, and capex is expected to rise significantly in 2027. Management said it expects ROIC to remain meaningfully above its cost of capital throughout this investment cycle.
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GOOGLcloud computingartificial intelligenceAI investment
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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/28/2026 | 325.61 |
| Change that session | +1.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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