Alphabet says Google Cloud revenue more than doubled to $30.7bn

Google Cloud revenue rose 103% to $30.7bn ($30,709m) in the third quarter, which ended on 30 September 2026, from $15,157m a year earlier, and its operating income rose to $11,121m from $3,594m, according to Alphabet's third-quarter release, furnished to the SEC at 4:01 PM ET (21:01 CET) on 28 October. Total revenue grew 25% to $127.6bn, or 25% in constant currency (non-GAAP), and operating income rose 30% to $40.6bn, a 31.8% margin. The company said growth in Google Cloud Platform was led by enterprise AI infrastructure, enterprise AI solutions and core services, and that sales of its TPU systems also added to revenue growth.

Net income available to common stockholders fell to $26.2bn from $35.0bn a year earlier, and diluted EPS (GAAP) to $2.12 from $2.87. The release itemises the swing below operating income: other income (expense) was a net cost of $8,221m, against a $12,759m gain in the third quarter of 2025. The largest item was an $8,664m loss on equity securities, against a $10,734m gain a year earlier. Alphabet said in a footnote that this $8.7bn loss reduced net income by $6.7bn and diluted EPS by $0.55, after lowering the tax provision by $1.9bn. Interest expense rose to $967m from $143m.

According to the cash-flow statement, purchases of property and equipment were $51.4bn in the quarter, against $24.0bn a year earlier, and free cash flow (non-GAAP) was negative $9.1bn. Alphabet raised net proceeds of $4.3bn from 12m Class A shares and $8.1bn from 24m Class C shares under its at-the-market programme, which had $27.6bn left at 30 September, and $28.7bn from senior unsecured notes. It bought back no stock in the quarter, against $11.5bn a year earlier. Long-term debt stood at $125.1bn on 30 September, up from $46.5bn at the end of 2025. The release gives no financial outlook.

Alphabet shares were down 10.62% at $290.38 in still-moving after-hours trade as of 6:06 PM ET (23:06 CET) on 28 October, according to Nasdaq.com, after closing up 1.34% at $324.89. Reuters said the shares fell after Alphabet missed analysts' profit and revenue expectations and its AI spending sped up its cash burn.

Nasdaq.com lists a $2.94 consensus from 14 estimates for the quarter, but it is not comparable with the $2.12 GAAP figure: the site records $9.11, Alphabet's GAAP figure including investment gains, for the June quarter against a $2.88 consensus, which suggests the estimates leave out such gains and losses. Alphabet reports no adjusted EPS; Reuters put the figure at $2.67, against a $3.02 Wall Street target. Revenue of $127.6bn was above the $127.22bn forecast listed on Investing.com but below the $128.2bn LSEG estimate cited by Reuters.