Alphabet reported Q3 2026 revenue of $127.6 billion, up 25% year over year, with Google Cloud reaching $30.7 billion (up 103%) on strong demand for AI infrastructure and TPU system sales. Google Search and other revenue reached $63.3 billion (up 12%), YouTube ad revenue $11.2 billion (up 9%), and subscriptions, platforms and devices $14.3 billion (up 11%). Operating income rose 30% to $40.6 billion, but non-GAAP EPS fell to $2.12 from $2.87 due to unrealized investment losses, and free cash flow was negative $9.1 billion, including a $5.2 billion payment for a European Commission fine. Google Cloud's backlog stood at $561 billion, with about 55% expected to be recognized as revenue over the next 24 months. Management warned of a larger FX headwind in Q4, near-term margin pressure in Cloud from using third-party compute capacity, and slower search revenue growth as it laps last year's acceleration.
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GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: high
| 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% |
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