Google Cloud more than doubles revenue to $30.7 billion, while Search and advertising businesses continue to deliver gains.
Alphabet, Google’s parent company, reported a 25% year-on-year rise in revenue to $127.6 billion for the third quarter ended September 30, 2026, driven by strong performances across its businesses, particularly Google Cloud and Search. Revenue stood at $102.3 billion in the year-ago quarter, while operating income grew 30% to $40.6 billion, with an operating margin of 31.8%.
CEO Sundar Pichai said Alphabet had reached a half-trillion-dollar revenue run rate, with investments in artificial intelligence (AI) contributing to growth across the company. He added that Search query growth, including commercial queries, had reached its highest year-on-year rate in five years.
Google Cloud emerged as a major growth driver, with revenue jumping 103% to $30.7 billion from $15.2 billion a year earlier. Demand for enterprise AI infrastructure, cloud solutions and tensor processing unit (TPU) systems supported the surge. Operating income more than tripled to $11.1 billion.
Alphabet’s AI momentum also extended to its products and developer ecosystem. The company’s first-party model APIs were processing nearly 32 billion tokens per minute, more than four times the year-ago volume, while the Gemini app crossed one billion users.
Google Services, which includes Search, YouTube, subscriptions, platforms and devices, generated $96.3 billion, up 11% year on year. Search and other revenue rose 12% to $63.4 billion, while YouTube advertising revenue increased to $11.2 billion from $10.3 billion.
Across its advertising businesses, Alphabet reported revenue of $82 billion, compared with $74.2 billion a year earlier. Revenue from subscriptions, platforms and devices also increased to $14.3 billion.
The results underline how AI investment, cloud demand and advertising continue to shape Alphabet’s growth trajectory.
