Summary
Right after the October 28, 2026 US close, Alphabet reported Q3 FY2026 results: revenue of $127.577 billion (+25% YoY), a slight miss versus expectations; Google Cloud doubled to $30.709 billion; capex surged +114% to $51.355 billion; free cash flow swung from +$24.461 billion to -$9.065 billion; shares tumbled more than 11% after hours.
Background and Data Scope
- Event: Alphabet's official earnings press release was published after the US market close on October 28, 2026.
- Sources: Consolidated results are from Alphabet's official earnings release; capex, cash flow and after-hours price data are per Zhitong Finance (republished via Stockstar); TPU sales forecasts are estimates from Wells Fargo and TD Cowen as relayed by Cailianshe.
- Scope: Figures are in US dollars; YoY compares with Q3 2025; consensus estimates are media-relayed, not company figures.
Core Data Table
| model | Q3 2026 actual | Q3 2025 same period | YoY | Source basis |
|---|---|---|---|---|
| Total revenue | $127.577B | — | +25% | Alphabet official; consensus $128.2B, slight miss; 13th straight double-digit growth quarter |
| Google Cloud revenue | $30.709B | $15.157B | +103% | Alphabet official |
| Google Cloud operating income | $11.121B; cloud operating margin 36.2% | cloud margin ~23.7% | +209% | Per Zhitong Finance / Stockstar |
| Consolidated operating income | $40.576B; operating margin 31.8% | — | +30% | Alphabet official |
| GAAP net income | $26.468B | $34.979B | -24% | Alphabet official |
| Net income attributable | $26.170B | — | — | Alphabet official |
| Diluted EPS | $2.12 | $2.87 | below consensus of $3.02 | Alphabet official + per Zhitong Finance |
| Capex (PP&E purchases) | $51.355B | $23.953B | +114% | Per Zhitong Finance |
| Operating cash flow | $42.290B | — | — | Per Zhitong Finance |
| Free cash flow | -$9.065B | +$24.461B | turned negative | Per Zhitong Finance |
| Net equity securities loss | -$8.664B | — | ~-$6.7B after tax (-$0.55 diluted EPS) | Per Zhitong Finance |
| Cash & marketable securities (period-end) | $265.098B | $126.843B (end-2025) | — | Per Zhitong Finance |
| Quarterly dividend | $0.22 per share, payable Dec 14 | — | — | Per Zhitong Finance |
Institutional TPU Sales Forecasts (Estimates)
| model | Forecast basis | 2026 | 2027 |
|---|---|---|---|
| Wells Fargo | TPU sales | ~$9.0B in Q3 | $99.0B |
| TD Cowen | TPU sales | $9.4B in 2H2026 | $62.5B |
Additional Notes
- Management (Pichai, per Alphabet's official release): Gemini App reached 1 billion users; first-party model API processes nearly 32 billion tokens per minute, more than 4x the prior-year level; YouTube Music/Premium subscribers exceed 150 million.
- Market reaction: after the October 28 US close, Alphabet shares plunged more than 11% after hours, per Zhitong Finance / Stockstar.