Alphabet Q3 Revenue Jumps 25% to $127.6B; Cloud Up 103%, EPS Slips to $2.12
GOOGL sits 22% above its 52-week low of $266.5.
Summary
Alphabet grew Q3 revenue 25% to $127.6 billion with Cloud up 103%, but an $8.7 billion equity-investment loss pushed EPS down to $2.12 from $2.87. Capital spending of $51.4 billion drove quarterly free cash flow to negative $9.1 billion.
Key Events · Earnings and Guidance · GOOGL
-
Q3 Revenue Up 25% to $127.6B
Consolidated revenues rose to $127,577 million from $102,346 million, the 13th straight quarter of double-digit growth; Google Search & other grew 12% to $63,350 million.
-
Google Cloud Revenue Doubles, Profit Triples
Cloud revenue jumped 103% to $30,709 million and segment operating income rose to $11,121 million from $3,594 million, with TPU system sales a meaningful contributor.
-
Equity Loss Cuts EPS to $2.12
An $8,664 million net loss on equity securities drove other income to $(8,221) million; net income fell to $26,170 million and diluted EPS to $2.12 from $2.87, while operating income rose 30% to $40,576 million at a 31.8% margin.
-
Free Cash Flow Negative on Capex
Purchases of property and equipment were $51,355 million in the quarter, producing free cash flow of $(9,065) million versus $24,551 million in Q4 2025.
Analysis · GOOGL · Technology
Revenue growth accelerated to 25% and Google Cloud more than doubled to $30.7 billion, with cloud operating income tripling to $11.1 billion — the AI infrastructure buildout is now converting into profit, not just spending. The catch sits below the operating line: an $8.7 billion loss on equity securities dragged other income to a $(8.2) billion expense, cutting net income to $26.2 billion and EPS to $2.12 from $2.87 a year ago. That decline is a mark-to-market swing on the investment portfolio, not an operating deterioration, and operating income actually rose 30% to $40.6 billion. Cash generation is the soft spot: free cash flow was negative $9.1 billion for the quarter as capital expenditures hit $51.4 billion, and the company is plugging the gap with the ATM ($12.4 billion raised in Q3, $27.6 billion left) and $28.7 billion of new notes.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 39.1% of the 988 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, GOOGL was trading at $326.01 on NASDAQ in the Technology sector, with a market capitalization of approximately $4T. The 52-week trading range was $266.50 to $408.61. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.