Alphabet posts 25% revenue growth as quarterly profit declines

Alphabet’s revenue reached US$127.6 billion in Q3 2026, up 25% from a year earlier, the company reported. Net income declined to US$26.17 billion from US$34.9 billion despite the sales increase. The results cover July through September.

The company recorded US$40.58 billion in operating income. Its revenue in Q3 2025 was US$102.3 billion.

Google Cloud brought in US$30.71 billion, against US$15.16 billion a year earlier. CEO Sundar Pichai said the division’s 103% revenue growth reflected demand for AI infrastructure and solutions. He also cited strong customer demand for TPU systems.

Pichai attributed growth in Search queries, including commercial searches, to AI investment. He said Alphabet’s first-party model APIs handled nearly 32 billion tokens each minute—more than four times the year-earlier volume.

Advertising on YouTube generated US$11.2 billion, up from US$10.26 billion. Revenue for Google’s subscriptions, platforms and devices category rose to US$14.29 billion from US$12.87 billion. That category includes hardware, Play Store and YouTube revenue outside advertising.

Other Bets posted a US$2.04 billion loss, wider than its US$1.4 billion loss a year earlier. The unit’s revenue increased to US$372 million from US$344 million.