Facts
- Alphabet earnings for the third quarter of 2026 were released Wednesday, October 28.
- Revenue rose about 25% to $127.6 billion, up from $102.3 billion a year earlier. That was roughly in line with analysts’ consensus of about $127.9 billion.
- Operating income was $40.58 billion, and operating margin rose to 31.8% from 30.5%.
- Net income fell to $26.17 billion from $34.9 billion a year earlier.
- Earnings per share were $2.12, well below the consensus estimate of $3.01. StockStory attributed the shortfall partly to an $8.7 billion loss on equity securities, compared with a $10.7 billion gain a year earlier.
- Google Cloud revenue rose to $30.71 billion from $15.16 billion a year earlier.
- YouTube advertising revenue was $11.2 billion, slightly below the roughly $11.4 billion analysts expected.
- Search and other revenue was $63.4 billion, below a FactSet consensus of $65 billion.
- Capital spending more than doubled from a year earlier, and free cash flow margin turned negative, at about -7.1%.
- Alphabet shares fell about 8% to roughly $299.54 following the report.
Source Read 9to5Google’s summary of Alphabet’s results here.
Image <a href="https://commons.wikimedia.org/wiki/File:Mountain_View_%28CA%2C_USA%29%2C_Charleston_Road%2C_Google-Schild_–2022–_2896.jpg” rel=”noopener” target=”_blank”>Mountain View (CA, USA), Charleston Road, Google-Schild — 2022 — 2896 by Dietmar Rabich, licensed under CC BY-SA 4.0.
