Alphabet said third-quarter revenue rose to $127.6 billion

Alphabet said revenue for the quarter ended Sept. 30 rose 25% to $127.6 billion. The earnings release, filed with the Securities and Exchange Commission and dated Oct. 28, shows $127,577 million, against $102,346 million a year earlier. Constant-currency revenue also rose 25%, which Alphabet presents as a non-GAAP measure. Operating income rose 30% to $40,576 million. The release says the operating margin was 31.8%. The summary table rounds that margin to 32%, against 31% a year earlier. Net income available to common stockholders was $26,170 million, and diluted earnings were $2.12 a share, against $34,979 million and $2.87 a year earlier.

Google Services revenue rose 11% to $96.3 billion. The supplement lists $96,302 million. Google Search & other was $63,350 million, against $56,567 million, and the release says that line grew 12%, with year-over-year query growth the fastest in five years. YouTube ads were $11,207 million, against $10,261 million. Google Network was $7,455 million, against $7,354 million. Subscriptions, platforms, and devices were $14,290 million, against $12,870 million. Google Cloud revenue was $30,709 million, against $15,157 million. The release describes that as a 103% increase and calls it record growth, led by Google Cloud Platform, including enterprise artificial-intelligence infrastructure and solutions, with tensor-processing-unit system sales also a meaningful contributor. Cloud operating income was $11,121 million, against $3,594 million. Services operating income was $39,157 million, against $33,527 million. Other Bets lost $2,047 million, against a loss of $1,426 million. Alphabet-level activities, which the release says are mainly shared artificial-intelligence research and development, lost $7,655 million, against $4,467 million. The headcount was 204,757, against 190,167.

Other income and expense was a net expense of $8,221 million, against income of $12,759 million a year earlier. The table’s equity-securities line was a loss of $8,664 million. Alphabet’s footnote says that loss reduced the tax provision, net income, and diluted earnings by $1.9 billion, $6.7 billion, and $0.55. Free cash flow, which Alphabet defines as cash from operations minus capital expenditure, was negative $9,065 million in the third quarter. Cash from operations was $42,290 million, and purchases of property and equipment were $51,355 million. The same table shows free cash flow of negative $5,855 million in the second quarter of 2026. Trailing-twelve-month free cash flow was $19,747 million. Those non-GAAP cash figures are Alphabet’s.

In the quarter the company issued 12 million Class A shares for net proceeds of $4.3 billion and 24 million Class C shares for $8.1 billion, with $27.6 billion still available under the at-the-market program on Sept. 30. It also issued senior unsecured notes for net proceeds of $28.7 billion for general corporate purposes. In October the board declared a quarterly cash dividend of $0.22 on Class A, Class B, and Class C stock, payable Dec. 14 to holders of record on Dec. 7, and a preferred dividend the release describes as $15.63 a share on the Series A and Series B mandatory convertible preferred stock. Chief executive Sundar Pichai said the company was on a half-trillion-dollar revenue run rate and that first-party model APIs were processing nearly 32 billion tokens a minute. Those are his figures. Reuters said the shares slid 12.6% on Thursday and described the quarter as a revenue miss. That description and that move are Reuters’ account. They are not a judgment on whether the shares should be owned.