Alphabet (NASDAQ: GOOGL) said revenue rose 25% to $127.6 billion in the quarter ended Sep 30, 2026. Operating income increased 30% to $40.6 billion, and the operating margin was 31.8%.
Google Cloud drove the growth. Its revenue increased 103% to $30.7 billion, and the segment's operating income rose to $11.1 billion from $3.6 billion a year earlier. Google Services revenue grew 11% to $96.3 billion, with Google Search & other up 12%.
Net income available to common stockholders was $26.2 billion, or $2.12 per diluted share, down from $35.0 billion, or $2.87, a year earlier. That works out to a 25% decline by our calculation from the release. Alphabet said a loss on equity securities of $8.7 billion cut net income by $6.7 billion and earnings per share by $0.55. Other income swung to an $8.2 billion expense, from a $12.8 billion gain in the same quarter of 2025.
Spending on data centers more than doubled. Purchases of property and equipment were $51.4 billion in the quarter, compared with $24.0 billion a year earlier, and quarterly free cash flow was negative $9.1 billion, according to the release. The company also raised $12.4 billion ($4.3 billion plus $8.1 billion) by selling Class A and Class C shares through its at-the-market program.
"We had a strong quarter and are now on a half-trillion dollar revenue run rate," CEO Sundar Pichai said. He also said the Gemini app "has reached one billion users" and that Google's first-party model APIs are processing "nearly 32 billion tokens per minute."