Alphabet cloud doubles as profit falls
Alphabet (NASDAQ: GOOGL, GOOG) released its third-quarter 2026 results on October 28 at approximately 4:06 p.m. ET. Revenue rose 25% year over year to $127.58 billion, slightly below Visible Alpha's $127.86 billion estimate. GAAP net income available to common shareholders declined to $26.17 billion from $34.98 billion, while diluted GAAP EPS fell to $2.12 from $2.87.
Google Cloud revenue surged 103% to $30.71 billion, with operating income reaching $11.12 billion. However, $8.66 billion in equity investment losses reduced GAAP EPS by $0.55. Capital expenditures totaled $51.36 billion, resulting in negative free cash flow of $9.07 billion. No updated full-year spending guidance was included in the initial release, and a reliable post-earnings stock reaction was not yet verified.
| Metric | Actual | Consensus |
|---|---|---|
| Total revenue | $127.58 billion (+25%) | $127.86 billion |
| GAAP net income attributable to common shareholders | $26.17 billion | — |
| GAAP EPS | $2.12 | Comparable basis unverified |
| Adjusted EPS | Not separately reported | Approx. $3.03 (Street basis) |
| Google Cloud revenue | $30.71 billion (+103%) | $29.15 billion |
| Google Search revenue | $63.35 billion | — |
| Operating income | $40.58 billion (+30%) | — |
| Free cash flow | -$9.07 billion | — |
| FY2026 capital expenditure guidance | No new guidance issued | Previous guidance $195–$205 billion |
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