Summary
After the U.S. close on October 28, 2026, Alphabet reported Q3 results ended September 30: revenue of $127.58B, up 25% year over year and below consensus; non-GAAP net income of $26.17B, down 34%; shares fell over 10% after hours, while Google Cloud revenue of $30.7B beat expectations.
Event Overview
- Date: After the U.S. market close on October 28, 2026, Alphabet officially released its Q3 2026 earnings (quarter ended September 30).
- Party: Alphabet (GOOGL.US).
- Event: According to The Paper (Pengpai), Alphabet posted Q3 revenue of $127.577B, up 25% year over year but below the market expectation of $128.2B; non-GAAP net income was $26.170B, down 34% year over year, and diluted EPS of $2.12 missed the consensus of $3.02. Shares dropped over 10% in after-hours trading following the report.
- Segment highlight: According to CLS (Cailianshe), Google Cloud revenue reached $30.7B with operating income of $11.1B, both above analyst expectations of $29.1B and $9.8B; Search and other revenue came in at $63.4B, below the expected $64.9B.
Key Information
| Item | Detail |
|---|---|
| Reporting period | Q3 2026 (ended September 30) |
| Release timing | After U.S. close, October 28, 2026 |
| Total revenue | $127.577B, +25% YoY, below expectation of $128.2B |
| Non-GAAP net income | $26.170B, -34% YoY |
| Diluted EPS | $2.12, below expectation of $3.02 |
| Revenue ex-TAC | $111.2B, slightly below analyst consensus of $111.3B |
| Equity investment result | $8.7B loss on equity investments in the quarter, weighing on net income |
| Google Cloud revenue / income | $30.7B / $11.1B, above expectations ($29.1B / $9.8B) |
| Search and other revenue | $63.4B, below expectation of $64.9B |
| Free cash flow | -$9.1B, negative for a second consecutive quarter (vs. about +$24.461B a year earlier) |
| Share price | Up 1.34% to close at $324.89 on Oct 28, market cap $3.95T; down over 10% after hours |
Background and Impact
- Profit pressure: Per CLS, an $8.7B loss on equity investments in the quarter was a major drag on year-over-year net income.
- Cash flow signal: Per CLS, free cash flow was negative for a second straight quarter at -$9.1B; per Communications World, free cash flow a year earlier was about +$24.461B.
- Share price gauge: Per The Paper, shares fell over 10% after hours immediately after the report; per 21st Century Business Herald, the decline narrowed to 9% as of 7:30 a.m. Beijing time.