Alphabet Announces Third Quarter 2026 Results
• Consolidated Alphabet revenues increased 25% to $127.6 billion, reflecting strong performance across the business and our 13th consecutive quarter of double-digit revenue growth.
• Google Services revenues increased 11% to $96.3 billion, led by 12% growth in Google Search & other with the year-over-year Search query growth rate the highest it has been in the last five years.
• Google Cloud delivered record growth as revenues increased 103% to $30.7 billion, led by strong growth in Google Cloud Platform (GCP) across enterprise AI infrastructure and enterprise AI solutions, as well as core GCP services. TPU systems sales were also a meaningful contributor to revenue growth.
• Consolidated Alphabet operating income increased 30% and operating margin was 31.8%.
• Net income available to common stockholders was $26.2 billion and EPS was $2.12.
“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.
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.
Google Cloud revenues grew 103%, powered by huge demand for our AI infrastructure and AI solutions. We’re also seeing strong demand for our TPU systems across a wide range of customers.
Gemini 4 Argon and Carbon are now leading at the frontier. Overall, our first- party model APIs are now processing nearly 32 billion tokens per minute, more than four times what we processed a year ago.
On top of that, the Gemini app has reached one billion users—making it the fastest-growing product in Google’s history—and we surpassed 150 million YouTube Music and Premium subscribers globally, including trials.
The following table summarizes our consolidated financial results for the quarters ended September 30, 2025 and 2026 (in millions, except for per share information and percentages).
(1) Non-GAAP measure. See the section captioned “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” for more details.
(1) Alphabet-level activities primarily reflect expenses related to our shared AI research and development.
Additional Information Relating to the Quarter Ended September 30, 2026 (unaudited)
During the three months ended September 30, 2026, we issued 12 million shares of Class A stock for net proceeds of $4.3 billion and 24 million shares of Class C stock for net proceeds of $8.1 billion. As of September 30, 2026, $27.6 billion remained available for future issuance under the ATM Program.
In the third quarter of 2026, we issued senior unsecured notes for net proceeds of $28.7 billion, to be used for general corporate purposes.
In October 2026, the company's Board of Directors declared a quarterly cash dividend of $15.63 per share on each of our Series A and Series B mandatory convertible preferred stock (equivalent to approximately $0.78 per share on each of our Series A and Series B Depositary Shares) and a quarterly cash dividend of $0.22 per share on our Class A, Class B, and Class C stock. The mandatory convertible preferred stock dividend is payable on November 15, 2026 to stockholders of record for each of the company's Series A and Series B shares as of November 1, 2026, and t he common stock dividend is payable on December 14, 2026 to stockholders of record for each of the company's Class A, Class B, and Class C shares as of December 7, 2026. 2
A live audio webcast of our third quarter 2026 earnings release call will be available on YouTube at https://www.youtube.com/watch?v=X9mmCagxJTo. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available at http://abc.xyz/investor.
We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor).
We also share Google news and product updates on Google's Keyword blog at https://www.blog.google/ and News From Google page on X at x.com/NewsFromGoogle, and our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest or material to our investors.
This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 and our most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 , which are on file with the SEC and are available on our investor relations website at http://abc.xyz/investor and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, and may be set forth in other reports and filings we make with the SEC. All information provided in this release and in the attachments is as of October 28, 2026 . Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: free cash flow; constant currency revenues; and percentage change in constant currency revenues. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision- making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign exchange rate movements and hedging activities, which are recognized at the consolidated level. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non- GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
For more information on these non-GAAP financial measures, please see the sections captioned “Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow” and “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” included at the end of this release.
As of As of September 30, December 31, 2025 2026 ────────────────────────────────────────────────────────────────────────────── -unaudited Assets Current assets: Cash and cash $ 30,708 $ 56,334 equivalents Marketable 96,135 208,764 securities Total cash, cash equivalents, 126,843 265,098 and marketable securities Accounts 62,886 72,784 receivable, net Inventory 2,439 13,308 Other current 13,870 23,475 assets Total current 206,038 374,665 assets Non-marketable 68,687 135,230 securities Deferred income 9,113 1,458 taxes Property and 246,597 372,827 equipment, net Operating lease 15,221 20,273 assets Goodwill 33,380 58,117 Intangible 1,283 8,817 assets, net Other non-current 14,962 31,925 assets Total assets $ 595,281 $ 1,003,312 Liabilities and Stockholders’ Equity Current liabilities: Accounts $ 12,200 $ 21,975 payable Accrued compensation 17,546 17,729 and benefits Accrued expenses and 55,557 74,317 other current liabilities Accrued revenue 10,864 11,051 share Deferred 6,578 9,429 revenue Total current 102,745 134,501 liabilities Long-term debt 46,547 125,102 Income taxes payable, 9,531 12,219 non-current Deferred income 919 27,833 taxes Operating lease 12,744 16,815 liabilities Other long-term 7,530 9,293 liabilities Total 180,016 325,763 liabilities Commitments and contingencies Stockholders’ equity: Series A and Series B preferred stock and additional paid-in capital, $0.001 par value per share, 100 shares authorized; 6.25% mandatory convertible 0 18,023 preferred stock, 0 and 19 shares issued and outstanding allocated equally between each series with a liquidation preference of $1,000 per share Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share: 300,000 shares authorized (Class A 180,000, Class 93,126 147,068 B 60,000, Class C 60,000); 12,088 (Class A 5,822, Class B 837, Class C 5,429) and 12,294 (Class A 5,888, Class B 828, Class C 5,578) shares issued and outstanding Accumulated other comprehensive -1,916 -4,326 income (loss) Retained 324,055 516,784 earnings Total stockholders’ 415,265 677,549 equity Total liabilities and $ 595,281 $ 1,003,312 stockholders’ equity
• Google Services includes products and services such as ads, Android, Chrome, consumer devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases; and consumer devices.
• Google Cloud includes infrastructure and platform services, applications, and other products and services for enterprise customers. Google Cloud generates services revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services. Google Cloud generates product revenues primarily from the sale of TPU systems.
• Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of autonomous transportation services and internet services.
Certain costs are not allocated to our segments because they represent Alphabet- level activities. These costs primarily include:
• certain AI-focused shared research and development activities, including employee compensation expenses and technical infrastructure usage costs associated with the development of our general AI models;
• corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements.
Charges associated with employee severance and office space reductions are also not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments. 7
(1) Includes all gains and losses, unrealized and realized, on equity securities. For Q3 2026, the net effect of the loss on equity securities of $8.7 billion decreased the provision for income tax, net income, and diluted net income per common share by $1.9 billion, $6.7 billion, and $0.55, respectively. Fluctuations in the value of our investments may be affected by market dynamics and other factors and could significantly contribute to the volatility of OI&E in future periods.
Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (in millions; unaudited) :
We provide non-GAAP free cash flow for the current quarter and trailing twelve months (“TTM”) because it is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet.
Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures.
TTM free cash flow: We define trailing twelve months free cash flow as net cash provided by operating activities less capital expenditures for the most recent twelve consecutive months.
Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues (in millions, except percentages; unaudited) :
We provide non-GAAP constant currency revenues (“constant currency revenues”) and non-GAAP percentage change in constant currency revenues (“percentage change in constant currency revenues”), because they facilitate the comparison of current results to historic performance by excluding the effect of foreign exchange rate movements (“FX Effect”) as well as hedging activities, which are recognized at the consolidated level, as they are not indicative of our core operating results.
Non-GAAP constant currency revenues is defined as revenues excluding the effect of foreign exchange rate movements and hedging activities and is calculated by translating current period revenues using prior period exchange rates and excluding any hedging effect recognized in the current period. We calculate the percentage change in constant currency revenues by comparing constant currency revenues to the prior year comparable period revenues, excluding any hedging effect recognized in the prior period. 8
Comparison from the Quarter Ended September 30, 2025 to the Quarter Ended September 30, 2026
(1) Total constant currency revenues of $128.1 billion for the quarter ended September 30, 2026 increased $25.5 billion compared to $102.6 billion in revenues, excluding hedging effect, for the quarter ended September 30, 2025.
Comparison from the Quarter Ended June 30, 2026 to the Quarter Ended September 30, 2026
(1) Total constant currency revenues of $127.8 billion for the quarter ended September 30, 2026 increased $8.1 billion compared to $119.7 billion in revenues, excluding hedging effect, for the quarter e nded June 30, 2026.
Comparison from the Quarter Ended September 30, 2024 to the Quarter Ended September 30, 2025
Full text with the tables
Exhibit 99.1
Alphabet Announces Third Quarter 2026 Results
MOUNTAIN VIEW, Calif. – October 28, 2026 – Alphabet Inc. (NASDAQ: GOOG, GOOGL)
today announced financial results for the quarter ended September 30, 2026.
• Consolidated Alphabet revenues increased 25% to $127.6 billion, reflecting
strong performance across the business and our 13th consecutive quarter of
double-digit revenue growth.
• Google Services revenues increased 11% to $96.3 billion, led by 12% growth in
Google Search & other with the year-over-year Search query growth rate the
highest it has been in the last five years.
• Google Cloud delivered record growth as revenues increased 103% to $30.7
billion, led by strong growth in Google Cloud Platform (GCP) across enterprise
AI infrastructure and enterprise AI solutions, as well as core GCP services. TPU
systems sales were also a meaningful contributor to revenue growth.
• Consolidated Alphabet operating income increased 30% and operating margin was
31.8%.
• Net income available to common stockholders was $26.2 billion and EPS was
$2.12.
Sundar Pichai, CEO of Google and Alphabet, said:
“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.
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.
Google Cloud revenues grew 103%, powered by huge demand for our AI
infrastructure and AI solutions. We’re also seeing strong demand for our TPU
systems across a wide range of customers.
Gemini 4 Argon and Carbon are now leading at the frontier. Overall, our first-
party model APIs are now processing nearly 32 billion tokens per minute, more
than four times what we processed a year ago.
On top of that, the Gemini app has reached one billion users—making it the
fastest-growing product in Google’s history—and we surpassed 150 million YouTube
Music and Premium subscribers globally, including trials.
We’re excited by the range of big opportunities ahead of us.”
Q3 2026 Financial Highlights
(unaudited)
The following table summarizes our consolidated financial results for the
quarters ended September 30, 2025 and 2026 (in millions, except for per share
information and percentages).
Quarter Ended
September 30, 2025 2026
──────────────────────────────────────────────────────────────────────────────
Revenues $ 102,346 $ 127,577
Change in revenues year over 16 % 25 %
year
Change in constant currency
revenues 15 % 25 %
year over year(1)
Operating income $ 31,228 $ 40,576
Operating margin 31 % 32 %
Other income (expense), net $ 12,759 $ -8,221
Net income available to common $ 34,979 $ 26,170
stockholders
Diluted net income per common $ 2.87 $ 2.12
share
(1) Non-GAAP measure. See the section captioned “Reconciliation from GAAP
Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in
Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” for more
details.
Q3 2026 Supplemental Information
(in millions, except for number of employees; unaudited)
Revenues, Traffic Acquisition Costs (TAC), and Number of Employees
Quarter Ended
September 30, 2025 2026
──────────────────────────────────────────────────────────────────────────────
Google Search & $ 56,567 $ 63,350
other
YouTube ads 10,261 11,207
Google Network 7,354 7,455
Google advertising 74,182 82,012
Google
subscriptions, 12,870 14,290
platforms, and
devices
Google Services 87,052 96,302
total
Google Cloud 15,157 30,709
Other Bets 344 372
Hedging gains -207 194
(losses)
Total revenues $ 102,346 $ 127,577
Total TAC $ 14,876 $ 16,366
Number of 190,167 204,757
employees
Segment Operating Results
Quarter Ended
September 30, 2025 2026
────────────────────────────────────────────────────────────────────
Operating income (loss):
Google Services $ 33,527 $ 39,157
Google Cloud 3,594 11,121
Other Bets -1,426 -2,047
Alphabet-level activities(1) -4,467 -7,655
Total income from operations $ 31,228 $ 40,576
(1) Alphabet-level activities primarily reflect expenses related to our shared
AI research and development.
Additional Information Relating to the Quarter Ended September 30, 2026
(unaudited)
At-the-Market Program
During the three months ended September 30, 2026, we issued 12 million shares of
Class A stock for net proceeds of $4.3 billion and 24 million shares of Class C
stock for net proceeds of $8.1 billion. As of September 30, 2026, $27.6 billion
remained available for future issuance under the ATM Program.
Issuance of Senior Unsecured Notes
In the third quarter of 2026, we issued senior unsecured notes for net proceeds
of $28.7 billion, to be used for general corporate purposes.
Preferred and Common Dividend Programs
In October 2026, the company's Board of Directors declared a quarterly cash
dividend of $15.63 per share on each of our Series A and Series B mandatory
convertible preferred stock (equivalent to approximately $0.78 per share on each
of our Series A and Series B Depositary Shares) and a quarterly cash dividend of
$0.22 per share on our Class A, Class B, and Class C stock. The mandatory
convertible preferred stock dividend is payable on November 15, 2026 to
stockholders of record for each of the company's Series A and Series B shares as
of November 1, 2026, and t he common stock dividend is payable on December 14,
2026 to stockholders of record for each of the company's Class A, Class B, and
Class C shares as of December 7, 2026.
2
Webcast and Conference Call Information
A live audio webcast of our third quarter 2026 earnings release call will be
available on YouTube at https://www.youtube.com/watch?v=X9mmCagxJTo. The call
begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the
reconciliations of certain non-GAAP measures to their nearest comparable GAAP
measures, is also available at http://abc.xyz/investor.
We also provide announcements regarding our financial performance, including SEC
filings, investor events, press and earnings releases, and blogs, on our
investor relations website (http://abc.xyz/investor).
We also share Google news and product updates on Google's Keyword blog at
https://www.blog.google/ and News From Google page on X at x.com/NewsFromGoogle,
and our executive officers may also use certain social media channels, such as X
and LinkedIn, to communicate information about earnings results and company
updates, which may be of interest or material to our investors.
Forward-Looki
ng Statements
This press release may contain forward-looking statements that involve risks and
uncertainties. Actual results may differ materially from the results predicted,
and reported results should not be considered as an indication of future
performance. The potential risks and uncertainties that could cause actual
results to differ from the results predicted include, among others, those risks
and uncertainties included under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in our
Annual Report on Form 10-K for the year ended December 31, 2025 and our most
recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 , which
are on file with the SEC and are available on our investor relations website at
http://abc.xyz/investor and on the SEC website at www.sec.gov. Additional
information will also be set forth in our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2026, and may be set forth in other reports and
filings we make with the SEC. All information provided in this release and in
the attachments is as of October 28, 2026 . Undue reliance should not be placed
on the forward-looking statements in this press release, which are based on
information available to us on the date hereof. We undertake no duty to update
this information unless required by law.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and
presented in accordance with GAAP, we use the following non-GAAP financial
measures: free cash flow; constant currency revenues; and percentage change in
constant currency revenues. The presentation of this financial information is
not intended to be considered in isolation or as a substitute for, or superior
to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision-
making and as a means to evaluate period-to-period comparisons. We believe that
these non-GAAP financial measures provide meaningful supplemental information
regarding our performance and liquidity by excluding certain items that may not
be indicative of our recurring core business operating results, such as our
revenues excluding the effect of foreign exchange rate movements and hedging
activities, which are recognized at the consolidated level. We believe that both
management and investors benefit from referring to these non-GAAP financial
measures in assessing our performance and when planning, forecasting, and
analyzing future periods. These non-GAAP financial measures also facilitate
management’s internal comparisons to our historical performance and liquidity as
well as comparisons to our competitors’ operating results. We believe these non-
GAAP financial measures are useful to investors both because (1) they allow for
greater transparency with respect to key metrics used by management in its
financial and operational decision-making and (2) they are used by our
institutional investors and the analyst community to help them analyze the
health of our business.
There are a number of limitations related to the use of non-GAAP financial
measures. We compensate for these limitations by providing specific information
regarding the GAAP amounts excluded from these non-GAAP financial measures and
evaluating these non-GAAP financial measures together with their relevant
financial measures in accordance with GAAP.
For more information on these non-GAAP financial measures, please see the
sections captioned “Reconciliation from GAAP Net Cash Provided by Operating
Activities to Non-GAAP Free Cash Flow” and “Reconciliation from GAAP Revenues to
Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to
Non-GAAP Percentage Change in Constant Currency Revenues” included at the end of
this release.
Contact
Investor relations Media
investor-relations@abc.xyz press@abc.xyz
3
Alphabet Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except per share amounts)
As of
As of September 30,
December 31, 2025 2026
──────────────────────────────────────────────────────────────────────────────
-unaudited
Assets
Current assets:
Cash and cash $ 30,708 $ 56,334
equivalents
Marketable 96,135 208,764
securities
Total cash,
cash
equivalents, 126,843 265,098
and
marketable
securities
Accounts 62,886 72,784
receivable, net
Inventory 2,439 13,308
Other current 13,870 23,475
assets
Total current 206,038 374,665
assets
Non-marketable 68,687 135,230
securities
Deferred income 9,113 1,458
taxes
Property and 246,597 372,827
equipment, net
Operating lease 15,221 20,273
assets
Goodwill 33,380 58,117
Intangible 1,283 8,817
assets, net
Other
non-current 14,962 31,925
assets
Total assets $ 595,281 $ 1,003,312
Liabilities and
Stockholders’
Equity
Current
liabilities:
Accounts $ 12,200 $ 21,975
payable
Accrued
compensation 17,546 17,729
and benefits
Accrued
expenses and 55,557 74,317
other current
liabilities
Accrued revenue 10,864 11,051
share
Deferred 6,578 9,429
revenue
Total current 102,745 134,501
liabilities
Long-term debt 46,547 125,102
Income taxes
payable, 9,531 12,219
non-current
Deferred income 919 27,833
taxes
Operating lease 12,744 16,815
liabilities
Other long-term 7,530 9,293
liabilities
Total 180,016 325,763
liabilities
Commitments and
contingencies
Stockholders’
equity:
Series A and
Series B
preferred stock
and additional
paid-in
capital, $0.001
par value per
share, 100
shares
authorized;
6.25% mandatory
convertible 0 18,023
preferred
stock, 0 and 19
shares issued
and outstanding
allocated
equally
between each
series with a
liquidation
preference of
$1,000 per
share
Class A, Class
B, and Class C
stock and
additional
paid-in
capital, $0.001
par
value per
share:
300,000 shares
authorized
(Class A
180,000, Class 93,126 147,068
B 60,000, Class
C
60,000); 12,088
(Class A 5,822,
Class B
837, Class C
5,429) and
12,294 (Class A
5,888, Class B
828, Class C
5,578)
shares issued
and outstanding
Accumulated
other
comprehensive -1,916 -4,326
income
(loss)
Retained 324,055 516,784
earnings
Total
stockholders’ 415,265 677,549
equity
Total
liabilities and $ 595,281 $ 1,003,312
stockholders’
equity
4
Alphabet Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts, unaudited)
Quarter Year To
Ended Date
Septem… Septemb…
2025 30, 2026 2025 30, 2026
──────────────────────────────────────────────────────────────────────────────
Revenu… $ 102,346 $ 127,577 $ 289,007 $ 357,269
Costs
and
expens…
Cost of 41,369 51,419 116,768 138,633
revenu…
Resear…
and 15,151 20,640 42,515 55,891
develo…
Sales
and 7,205 8,804 20,478 24,813
market…
General
and 7,393 6,138 16,141 16,890
admini…
Total
costs 71,118 87,001 195,902 236,227
and
expens…
Income
from 31,228 40,576 93,105 121,042
operat…
Other
income 12,759 -8,221 26,604 127,478
(expen…
net
Income
before 43,987 32,355 119,709 248,520
income
taxes
Provis…
for 9,008 5,887 21,994 47,281
income
taxes
Net 34,979 26,468 97,715 201,239
income
Prefer…
stock 0 298 0 384
divide…
Net
income
availa… $ 34,979 $ 26,170 $ 97,715 $ 200,855
to
common
stockh…
Basic
net
income $ 2.89 $ 2.14 $ 8.06 $ 16.51
per
common
share
Diluted
net
income $ 2.87 $ 2.12 $ 7.99 $ 16.33
per
common
share
Number
of
shares
used in
basic
net 12,086 12,256 12,130 12,169
income
per
common
share
calcul…
Number
of
shares
used in
diluted
net 12,203 12,368 12,230 12,324
income
per
common
share
calcul…
5
Alphabet Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)
Quarter Year To
Ended Date
Septem… Septemb…
2025 30, 2026 2025 30, 2026
──────────────────────────────────────────────────────────────────────────────
Operat…
activi…
Net $ 34,979 $ 26,468 $ 97,715 $ 201,239
income
Adjust…
Deprec…
of
proper… 5,611 8,369 15,096 21,955
and
equipm…
Stock-…
compen… 6,368 8,630 17,882 23,338
expense
Deferr…
income 8,726 5,539 7,130 33,077
taxes
Loss
(gain)
on debt
and -10,855 9,048 -22,266 -126,7…
equity
securi…
net
Other -198 1,664 843 4,825
Changes
in
assets
and
liabil…
net
of
effects
of
acquis…
Accoun…
receiv… -2,381 -3,917 -3,582 -10,821
net
Invent… -526 -3,220 -1,154 -10,959
Income
taxes, -858 -3,702 -3,292 4,602
net
Other -767 -7,807 -2,906 -17,757
assets
Accoun… -444 -165 -771 1,925
payable
Accrued
expens…
and 8,078 -1,168 6,299 -860
other
liabil…
Deferr… 681 2,551 1,317 3,340
revenue
Net
cash
provid… 48,414 42,290 112,311 127,149
by
operat…
activi…
Invest…
activi…
Purcha…
of
proper… -23,953 -51,355 -63,596 -131,9…
and
equipm…
Purcha…
of -20,964 -39,987 -60,834 -116,4…
market…
securi…
Maturi…
and
sales 20,371 21,820 61,301 88,516
of
market…
securi…
Purcha…
of -1,000 -2,109 -3,312 -24,160
non-ma…
securi…
Maturi…
and
sales 323 208 1,196 1,875
of
non-ma…
securi…
Acquis…
net of
cash
acquir…
and -1,072 -406 -1,425 -34,103
purcha…
of
intang…
assets
Other
invest… -1,482 480 -1,845 -879
activi…
Net
cash
used in -27,777 -71,349 -68,515 -217,1…
invest…
activi…
Financ…
activi…
Net
paymen…
related
to -3,270 -5,368 -9,001 -17,424
stock-…
award
activi…
Repurc…
of -11,504 0 -39,810 0
stock
Divide…
paymen…
on
prefer… -2,537 -2,936 -7,513 -8,167
and
common
stock
Procee…
from
issuan…
of 0 12,371 0 42,870
common
stock,
net of
costs
Procee…
from
issuan…
of
mandat… 0 0 0 19,063
conver…
prefer…
stock,
net of
costs
Procee…
from
issuan…
of 6,624 28,996 38,002 85,222
debt,
net of
costs
Repaym… -7,696 -3,626 -26,094 -8,879
of debt
Procee…
from
sale of
intere… 0 0 400 3,758
in
consol…
entiti…
net
Other
financ… 0 0 -400 -686
activi…
Net
cash
provid…
by -18,383 29,437 -44,416 115,757
(used
in)
financ…
activi…
Effect
of
exchan…
rate
changes -200 45 244 -109
on cash
and
cash
equiva…
Net
increa…
(decre…
in cash 2,054 423 -376 25,626
and
cash
equiva…
Cash
and
cash
equiva… 21,036 55,911 23,466 30,708
at
beginn…
of
period
Cash
and
cash
equiva… $ 23,090 $ 56,334 $ 23,090 $ 56,334
at end
of
period
6
Segment Results
The following table presents our segment revenues and operating income (loss)
(in millions; unaudited):
Quarter Ended
September 30, 2025 2026
──────────────────────────────────────────────────────────────────────
Revenues:
Google Services $ 87,052 $ 96,302
Google Cloud 15,157 30,709
Other Bets 344 372
Hedging gains (losses) -207 194
Total revenues $ 102,346 $ 127,577
Operating income (loss):
Google Services $ 33,527 $ 39,157
Google Cloud 3,594 11,121
Other Bets -1,426 -2,047
Alphabet-level activities -4,467 -7,655
Total income from operations $ 31,228 $ 40,576
We report our segment results as Google Services, Google Cloud, and Other Bets:
• Google Services includes products and services such as ads, Android, Chrome,
consumer devices, Google Maps, Google Play, Search, and YouTube. Google Services
generates revenues primarily from advertising; fees received for consumer
subscription-based products such as YouTube TV, YouTube Music and Premium, and
NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases;
and consumer devices.
• Google Cloud includes infrastructure and platform services, applications, and
other products and services for enterprise customers. Google Cloud generates
services revenues primarily from consumption-based fees and subscriptions
received for Google Cloud Platform services, Google Workspace communication and
collaboration tools, and other enterprise services. Google Cloud generates
product revenues primarily from the sale of TPU systems.
• Other Bets is a combination of multiple operating segments that are not
individually material. Revenues from Other Bets are generated primarily from the
sale of autonomous transportation services and internet services.
Certain costs are not allocated to our segments because they represent Alphabet-
level activities. These costs primarily include:
• certain AI-focused shared research and development activities, including
employee compensation expenses and technical infrastructure usage costs
associated with the development of our general AI models;
• corporate initiatives such as our philanthropic activities; and
• corporate shared costs such as certain finance, human resource, and legal
costs, including certain fines and settlements.
Charges associated with employee severance and office space reductions are also
not allocated to our segments. Additionally, hedging gains (losses) related to
revenue are not allocated to our segments.
7
Other Income (Expense), Net
The following table presents our other income (expense), net (in millions;
unaudited):
Quarter Ended
September 30, 2025 2026
──────────────────────────────────────────────────────────────────────────────
Interest income $ 1,076 $ 1,768
Interest expense -143 -967
Foreign currency exchange gain (loss), -143 22
net
Gain (loss) on debt securities, net 122 -383
Gain (loss) on equity securities, 10,734 -8,664
net(1)
Income (loss) and impairment from
equity -30 -143
method investments, net
Other 1,143 146
Other income (expense), net $ 12,759 $ -8,221
(1) Includes all gains and losses, unrealized and realized, on equity
securities. For Q3 2026, the net effect of the loss on equity securities of $8.7
billion decreased the provision for income tax, net income, and diluted net
income per common share by $1.9 billion, $6.7 billion, and $0.55, respectively.
Fluctuations in the value of our investments may be affected by market dynamics
and other factors and could significantly contribute to the volatility of OI&E
in future periods.
Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP
Free Cash Flow (in millions; unaudited) :
We provide non-GAAP free cash flow for the current quarter and trailing twelve
months (“TTM”) because it is a liquidity measure that provides useful
information to management and investors about the amount of cash generated by
the business that can be used for strategic opportunities, including investing
in our business and acquisitions, and to strengthen our balance sheet.
Quart… Q4 Q1 Q2 Q3 Q3
Ended 2025 2026 2026 2026 TTM 2026
──────────────────────────────────────────────────────────────────────────────
Net
cash
prov… $ 52,402 $ 45,790 $ 39,069 $ 42,2… $ 179,5…
by
oper…
acti…
Less:
purc…
of -27,8… -35,6… -44,9… -51,… -159,…
prop…
and
equi…
Free
cash $ 24,551 $ 10,116 $ -5,855 $ -9,0… $ 19,747
flow
Free cash flow: We define free cash flow as net cash provided by operating
activities less capital expenditures.
TTM free cash flow: We define trailing twelve months free cash flow as net cash
provided by operating activities less capital expenditures for the most recent
twelve consecutive months.
Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and
GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant
Currency Revenues (in millions, except percentages; unaudited) :
We provide non-GAAP constant currency revenues (“constant currency revenues”)
and non-GAAP percentage change in constant currency revenues (“percentage change
in constant currency revenues”), because they facilitate the comparison of
current results to historic performance by excluding the effect of foreign
exchange rate movements (“FX Effect”) as well as hedging activities, which are
recognized at the consolidated level, as they are not indicative of our core
operating results.
Non-GAAP constant currency revenues is defined as revenues excluding the effect
of foreign exchange rate movements and hedging activities and is calculated by
translating current period revenues using prior period exchange rates and
excluding any hedging effect recognized in the current period. We calculate the
percentage change in constant currency revenues by comparing constant currency
revenues to the prior year comparable period revenues, excluding any hedging
effect recognized in the prior period.
8
Revenues by Geography
Comparison from the Quarter Ended September 30, 2025 to the Quarter Ended
September 30, 2026
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
%
…
…
…
…
… … … … … …
… … … … … … …
… … … … … … …
…
… …
$ … $ … $ 0 $ … … % 0 % … %
… … … … 9 % … % … %
… … … … … % … % … %
… … … … … % 2 % … %
… … … … … % … % … %
… …
$ … $ … $ … … % 1 % … % … %
(1) Total constant currency revenues of $128.1 billion for the quarter ended
September 30, 2026 increased $25.5 billion compared to $102.6 billion in
revenues, excluding hedging effect, for the quarter ended September 30, 2025.
Comparison from the Quarter Ended June 30, 2026 to the Quarter Ended September
30, 2026
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
%
…
…
…
…
… … … … … … …
… … … … … … …
… … … … …
… …
… …
… …
$ … $ … $ 0 $ … … % 0 % … %
… … … … 1 % … % 2 %
… … … … 3 % 0 % 3 %
… … … … 1 % … % 2 %
… … … … 6 % … % 7 %
… …
$ … $ … $ … 6 % 0 % … % 7 %
(1) Total constant currency revenues of $127.8 billion for the quarter ended
September 30, 2026 increased $8.1 billion compared to $119.7 billion in
revenues, excluding hedging effect, for the quarter e nded June 30, 2026.
Total Revenues — Prior Year Comparative Periods
Comparison from the Quarter Ended September 30, 2024 to the Quarter Ended
September 30, 2025
──────────────────────────────────────────────────────────────────────────────
… …
… …
… …
$ … 1 …
$ … % 1 …
9