The Quarter in Brief
Alphabet, the parent company of Google, reported its third quarter of 2026, the three months ended September 30, after the US market closed on Wednesday, October 28. Revenues were $127.58 billion, up 25% from $102.35 billion a year earlier and close to the analysts' consensus of $127.9 billion compiled by S&P and published by StockStory. Diluted earnings per share were $2.12, down from $2.87 a year earlier and well below the consensus of $3.01.
What set the quarter apart was Google Cloud, whose revenue more than doubled, up 103% to $30.71 billion, with sales of TPU systems, computers built around the company's own AI chips, among the contributors. Profit, by contrast, was pulled down by investments Alphabet holds in other companies: their fall in value produced an $8.66 billion loss on equity securities, against a $10.73 billion gain a year earlier. Alphabet says this quarter's loss cut earnings per share by $0.55.