Alphabet Reports $127.6 Billion Revenue as Google Cloud Sales Double

Alphabet reported $127.6 billion in revenue for the third quarter of 2026, a 25% increase from the same period a year earlier, as its Google Cloud division more than doubled sales. The company released the figures on October 28 for the three months ended September 30.

Google Cloud revenue climbed 103% to approximately $30.7 billion, compared with $15.2 billion a year earlier. Alphabet attributed the increase to demand for enterprise artificial-intelligence infrastructure, AI services and its wider cloud platform. The division's operating income rose to $11.1 billion from $3.6 billion, according to the company's regulatory filing.

The group's established Google Services business generated $96.3 billion in revenue, up 11%. Within that business, Google Search and related advertising revenue reached $63.35 billion, while YouTube advertising brought in $11.21 billion. These figures show that advertising remains a large revenue source even as cloud contributes a growing share of incremental sales.

Alphabet's consolidated operating income rose 30% to $40.6 billion. Net income available to common shareholders, however, declined to $26.17 billion from $34.98 billion, and diluted earnings per common share fell to $2.12 from $2.87. The decline occurred despite higher operating profit, reflecting a reversal in other income and expense items.

Investment in infrastructure also increased. The company's purchases of property and equipment reached approximately $51.36 billion in the quarter, compared with $23.95 billion in the corresponding 2025 period. That spending is a recorded capital outlay, not a forecast of future AI revenue.

The results illustrate the simultaneous expansion of Alphabet's cloud business and its infrastructure requirements. Future returns on that spending remain uncertain; the company has reported current sales and expenditure, not a guaranteed financial payoff from new capacity.