$GOOG · Alphabet Inc.
Alphabet reported Q3 2026 results with revenue of $127.6B (+25% YoY) and diluted EPS of $2.12, down from $2.87 a year ago. Operating income rose 30% to $40.6B, but net income available to common stockholders fell to $26.2B from $35.0B as other income swung to an $8.2B loss. Google Cloud revenue more than doubled to $30.7B.
- Revenue hit $127.6B (+25% YoY), the 13th consecutive quarter of double-digit growth.
- Google Cloud revenue surged 103% YoY to $30.7B, driven by AI infrastructure and TPU system sales.
- Diluted EPS fell to $2.12 from $2.87 YoY, a 26% decline, as other income swung from +$12.8B to -$8.2B.
- Operating income rose 30% to $40.6B with operating margin expanding to 31.8%.
- Headcount grew to 204,757 employees, up from 190,167 a year ago.
Extended-hours trading shows GOOG at $295.19, down 8.29% from the regular-session close of $321.89. The $26.2B net income miss versus the prior year's $35.0B — driven by the $8.2B other-income loss — is overwhelming the 25% revenue beat.
A $3.9T company growing revenue 25% yet posting a 26% EPS decline is a rare divergence that exposes how equity-portfolio volatility can overwhelm even exceptional operating performance.
Alphabet's 103% Google Cloud growth dramatically outpaces AWS and Azure, but the EPS decline from investment-portfolio losses echoes a broader risk for mega-cap tech companies holding large equity stakes. The $28.7B debt issuance and $12.4B in ATM equity raises suggest aggressive capital-raising even at ~$3.9T market cap.
The $8.2B other income (expense) net loss — a $21B swing from +$12.8B a year ago — signals significant exposure to mark-to-market volatility on Alphabet's investment portfolio. R&D costs jumped 36% YoY to $20.6B, reflecting heavy AI infrastructure spending that may pressure margins if Cloud growth decelerates.