Alphabet Class C (ABEC) Q3 2026 Earnings Report
CH:ABEC Q3 2026 EPS Results
- Actual EPS
- CHF 1.75
- Consensus EPS
- CHF 2.48
- Beat/Miss
- Missed by -CHF 0.74
- One Year Ago EPS
- CHF 2.36
CH:ABEC Q3 2026 Revenue Results
- Actual Revenue
- CHF 104.94B
- Expected Revenue
- CHF 105.42B
- Beat/Miss
- Missed by -CHF 481.20M
- YoY Revenue Growth
- +24.21%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
CH:ABEC Upcoming Earnings
Alphabet Class C's next earnings date is estimated for February 2, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CH:ABEC Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Alphabet reported 25% consolidated revenue growth, record Google Cloud momentum, rapid AI model and Gemini adoption, expanding advertising and subscription businesses, and strong operating cash flow. The main challenges were substantial AI infrastructure investment, negative quarterly free cash flow, future CapEx increases, near-term Cloud margin pressure from third-party capacity, Search growth comparison and FX headwinds, and losses from SpaceX valuation, Other Bets and shared AI R&D. Highlights significantly outweighed the lowlights.
Company Guidance
For Q4 2026, Alphabet expects a slightly larger FX headwind to consolidated revenues at current spot rates, primarily in Search and YouTube Ads; Google Services will continue to lap the search performance acceleration that began in the third quarter last year, which will pressure revenue growth in Q4, with “a couple of points of lapping that growth acceleration,” while TPU system sales are expected to continue to scale in Q4, followed by a meaningful revenue ramp in 2027. Cloud margins are expected to face margin headwinds in the near term as third-party compute capacity ramps in Q4. The full year 2026 CapEx guidance range of $195 billion to $205 billion remains unchanged, CapEx is expected to increase significantly in 2027, and the significant increase in investment in technical infrastructure will continue to weigh on the P&L through higher depreciation expenses and related data centers operation costs.
- Strong Alphabet Revenue GrowthThird-quarter consolidated revenue was $127.6 billion, up 25% year-over-year in both reported and constant currency, marking Alphabet's 13th consecutive quarter of double-digit revenue growth. Alphabet reached a $0.5 trillion annual run rate.
- Higher Operating Income and MarginOperating income increased 30% to $40.6 billion, with an operating margin of 31.8%.
- Search Query and Advertising MomentumSearch and other advertising revenue increased 12% to $63.3 billion. Year-over-year query growth was the highest in the last 5 years, supported by increased usage of AI features and growth in commercial queries.
- Rapid Google Cloud GrowthGoogle Cloud revenue increased 103% to $30.7 billion, driven by strength in AI infrastructure, AI solutions, core GCP and TPU system sales. Cloud operating income was $11.1 billion, more than tripling year-over-year, while operating margin increased from 23.7% to 36.2%.
- Large and Growing Cloud BacklogGoogle Cloud backlog reached $561 billion, with the majority related to typical GCP contracts. Alphabet expects to recognize just over 55% of the total backlog as revenue over the next 24 months.
- Strong AI Model Usage and Product MomentumFirst-party model APIs were processing nearly 32 billion tokens per minute, up 40% from the prior quarter and more than 4x the level a year ago. Gemini 4 Argon usage on developer platforms ramped 3.5x faster in its first week than Gemini 3, even with capacity constraints. Carbon was announced as Alphabet's strongest frontier model, ranking #1 on the recently updated Artificial Analysis Intelligence Index at 59.
- Gemini App and Premium Subscriber GrowthThe Gemini app reached 1 billion users and was described as the fastest-growing product in Google's history. YouTube Music and Premium surpassed 150 million global subscribers, including trials.
- Internal Productivity Gains from ArgonTeams across Chrome, Ads and Search used Argon to ship 35% more code with 30% fewer errors. Sundar Pichai also described Argon as a meaningful internal productivity lever for software engineering and said Carbon was a further step-up.
- Expansion of AI-Powered Search ExperiencesQueries in AI Mode were on average 3x longer than traditional searches, and 1 in 5 AI Mode searches globally used voice, images or documents. Google crossed 50 billion visual searches per month and continued developing AI Overviews, AI Mode and agentic experiences across Search, Gemini, Chrome, Android and Workspace.
- Progress in Search Advertising and Advertiser ValueThe largest update to product listing ads in a decade increased user satisfaction by 19% and reduced dissatisfaction by more than half. Discover ads generated 18% incremental advertiser value and an 8% increase in user sentiment in 2026. Google began scaling ads in AI Overviews and AI Mode to more users and queries, including international markets.
- Rapid Adoption of AI Advertising ToolsGemini models helped advertisers generate more than 1.5 billion campaign assets in Q3, up over 7x year-over-year. Telstra reported a 52% increase in conversions and a 36% reduction in cost per order using AI Max.
- YouTube Advertising and Subscription ProgressYouTube advertising revenue increased 9% to $11.2 billion, with notable strength in living room viewing. Living room accounted for more than one-third of total YouTube Ads revenue. YouTube Premium had more than 150 million subscribers, and subscriptions continued to grow faster than ads.
- YouTube Commerce and Creator Ecosystem ExpansionMore than 1.3 million channels were enrolled in YouTube Shopping globally, and Amazon joined YouTube Shopping, allowing U.S. creators to tag Amazon products in videos, Shorts and live streams. YouTube's Creator Partnerships program connected brands with more than 3 million creators.
- Enterprise Gemini and Cloud Customer AdoptionGoogle Cloud had 18 product lines generating more than $1 billion each in annual revenue. Nearly 90% of the Fortune 100 used Gemini Enterprise, more than 100 million knowledge-work seats had been sold across Google's AI services, and customers using Gemini Enterprise in Q3 2025 more than quadrupled their spend year-over-year.
- Customer Results from Gemini Enterprise and Cloud AIBNP Paribas was deploying Gemini Enterprise to more than 65,000 employees. Tata Steel deployed more than 300 specialized AI agents in 9 months and cut service times by 50%. Ulta Beauty's AI shopping assistant produced a 3x higher conversion rate than traditional browsing.
- Database, Analytics and Cybersecurity ImprovementsBigQuery query speed improved more than 40% year-over-year while query processing cost declined more than 50%. Etsy's migration of 3 petabytes of data enabled critical data joins up to 60% faster. Gemini cyber models patched vulnerabilities 2.6x more reliably than other models, and Gemini and Google Threat Intelligence analyzed millions of external events daily with 98% accuracy.
- TPU Performance and DemandTPU 8t offered up to 2.7x better training performance and TPU 8i offered 80% better inference price performance versus the previous TPU generation. Nearly 100 customers were using TPUs, with demand from AI labs, capital markets firms, enterprises, universities and public-sector providers. Alphabet entered partnerships with Crux AI and Oracle to deliver TPU systems.
- Strong Operating Cash Flow and LiquidityThird-quarter operating cash flow was $42.3 billion and trailing-twelve-month operating cash flow was $179.6 billion. Alphabet ended the quarter with $265.1 billion in cash and marketable securities, including $90.4 billion of marketable equity securities.
- Waymo and Other Long-Term InitiativesWaymo surpassed 300 million fully autonomous miles, operated in 15 major U.S. cities and opened public service in San Antonio, San Diego and Tampa, with planned expansions into Canada, Germany, Singapore and Spain. Alphabet also cited progress at Isomorphic, in quantum computing and through Project Suncatcher.
- Agentic Commerce and Consumer Expansion OpportunitiesThe Universal Commerce Protocol enabled direct checkout for hundreds of thousands of brands across Google, and Universal Cart was launched to support cross-retailer shopping. Management described agentic experiences as additive and an expansion opportunity for Search, with potential advertising, subscription and payment opportunities.
CH:ABEC Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 02, 2027 | 2026 (Q4) | 2.64- | 2.32 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 2.481.75 | 2.36 | -26.13% (-0.62) | |
| Jul 22, 2026 | 2026 (Q2) | 2.377.51 | 1.9 | 294.37% (+5.60) | |
| Apr 29, 2026 | 2026 (Q1) | 2.214.21 | 2.31 | 81.85% (+1.89) | |
| Feb 04, 2026 | 2025 (Q4) | 2.172.32 | 1.77 | 31.16% (+0.55) | |
| Oct 29, 2025 | 2025 (Q3) | 1.872.36 | 1.75 | 35.38% (+0.62) | |
| Jul 24, 2025 | 2025 (Q2) | 1.801.90 | 1.56 | 22.22% (+0.35) | |
| Apr 24, 2025 | 2025 (Q1) | 1.672.31 | 1.56 | 48.68% (+0.76) | |
| Feb 04, 2025 | 2024 (Q4) | 1.751.77 | 1.35 | 31.10% (+0.42) | |
| Oct 29, 2024 | 2024 (Q3) | 1.521.75 | 1.28 | 36.77% (+0.47) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed