Alphabet Class A (ABEA) Q3 2026 Earnings Report
DE:ABEA Q3 2026 EPS Results
- Actual EPS
- EUR 1.89
- Consensus EPS
- EUR 2.69
- Beat/Miss
- Missed by -EUR 0.80
- One Year Ago EPS
- EUR 2.56
DE:ABEA Q3 2026 Revenue Results
- Actual Revenue
- EUR 113.68B
- Expected Revenue
- EUR 114.19B
- Beat/Miss
- Missed by -EUR 516.94M
- YoY Revenue Growth
- +24.21%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
DE:ABEA Upcoming Earnings
Alphabet Class A's next earnings date is estimated for February 2, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:ABEA 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, supported by 25% consolidated revenue growth, record Google Cloud momentum, significant AI usage expansion, strong operating income growth and broad adoption of Gemini, TPUs and AI-powered advertising products. The company also highlighted substantial progress in YouTube, Waymo and enterprise AI. Offsetting factors included lower net income and EPS, negative quarterly free cash flow, substantial AI infrastructure investment, near-term Cloud margin headwinds, foreign-exchange and comparison pressures, limited Network advertising growth, and losses in Other Bets and Alphabet-level activities. The highlights significantly outweighed the lowlights.
Company Guidance
For Q4, Alphabet expects a slightly larger FX headwind to consolidated revenues than in the prior quarter, primarily in Search and YouTube Ads; Google Services will continue to lap the search performance acceleration that began in the third quarter last year, pressuring revenue growth, while Google Cloud expects TPU system sales to continue to scale in Q4, followed by a meaningful revenue ramp in 2027, and expects margin headwinds in the near term as it ramps third-party compute capacity. Full year 2026 CapEx guidance remains $195 billion to $205 billion, CapEx is expected to increase significantly in 2027, and the company expects to recognize just over 55% of its $561 billion Cloud backlog as revenues over the next 24 months; Alphabet also expects to generate an attractive ROIC that remains meaningfully above its cost of capital and strong cash flow from operations, while investments in technical infrastructure and inventory build of TPU systems will put pressure on free cash flows.
- Strong Consolidated Revenue GrowthAlphabet reported third-quarter revenue of $127.6 billion, up 25% year-over-year in both reported and constant currency. This was the company's 13th consecutive quarter of double-digit revenue growth, bringing the company to a $0.5 trillion annual run rate.
- Search Query MomentumSearch query growth was the highest year-over-year growth rate in the last 5 years, with AI investments driving increased usage, overall query growth and commercial queries.
- Google Cloud Revenue More Than DoubledGoogle Cloud revenue grew 103% year-over-year to $30.7 billion, driven by strong growth in Google Cloud Platform, AI infrastructure, AI solutions, core GCP and TPU system sales.
- Record Google Cloud Profitability and BacklogGoogle Cloud operating income was $11.1 billion, more than tripling year-over-year, while operating margin increased from 23.7% to 36.2%. Cloud backlog reached $561 billion, with the company expecting to recognize just over 55% of it as revenue over the next 24 months.
- Strong AI Model Usage and Gemini App GrowthFirst-party model APIs processed nearly 32 billion tokens per minute, up 40% from the prior quarter and more than 4x the level a year ago. The Gemini app reached 1 billion users and was described as the fastest-growing product in Google's history.
- Gemini 4 Argon Adoption and Developer ProductivityUsage of Gemini 4 Argon on developer platforms ramped 3.5x faster in its first week than Gemini 3, despite capacity constraints. Internal teams using Argon shipped 35% more code with 30% fewer errors.
- Gemini 4 Carbon and Genie 4 LaunchesAlphabet announced Carbon, described as its strongest frontier model with state-of-the-art cybersecurity and long-horizon capabilities. Carbon ranked #1 on the recently updated Artificial Analysis Intelligence Index at 59 and outperformed Argon across almost every cited domain. Alphabet also announced Genie 4, its most advanced world model for simulating safe, realistic and interactive worlds with native audio in real time.
- Expansion of AI 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 was expanding agentic experiences across Search, Gemini, Chrome, Android and Workspace.
- AI Advertising Performance ImprovementsThe largest update to product listing ads in a decade increased satisfaction by 19% and reduced dissatisfaction by more than half. Personalization innovations delivered 18% incremental advertiser value and an 8% increase in user sentiment on Discover ads in 2026.
- 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's use of AI Max resulted in a 52% increase in conversions and a 36% reduction in cost per order.
- Expansion of AI Search MonetizationAlphabet stated that the majority of AI Mode queries are incremental and that ad experiments showed promising results. The company was scaling high-quality ads in AI Overviews and AI Mode to more users and queries, including international markets and multiturn ads in the U.S.
- YouTube Advertising and Subscription GrowthYouTube remained the #1 streaming platform in the U.S. by watch time. YouTube advertising revenue increased 9% to $11.2 billion, with notable strength in living room viewing, which accounted for over one-third of total YouTube Ads revenue. YouTube Premium surpassed 150 million subscribers globally, including trials.
- 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 directly in videos, Shorts and live streams. YouTube's Creator Partnerships program connected brands with more than 3 million creators.
- Google Services Revenue and Operating Income GrowthGoogle Services revenue increased 11% to $96.3 billion, supported by strong growth in Search and subscriptions. Google Services operating income increased 17% to $39.2 billion, with an operating margin of 40.7%.
- Enterprise Gemini Adoption and Customer ExpansionMore than 100 million knowledge-work seats had been sold across Google's AI services. Nearly 90% of the Fortune 100 used Gemini Enterprise, and customers that used Gemini Enterprise in Q3 2025 more than quadrupled their spending year-over-year. Google Cloud had 18 product lines generating more than $1 billion in annual revenue each.
- Customer Outcomes from Google Cloud AITata Steel deployed more than 300 specialized AI agents in 9 months and cut customer service times by 50%. Ulta Beauty's AI shopping assistant generated a 3x higher conversion rate than traditional browsing. BigQuery query speed improved over 40% year-over-year while query processing cost declined by over 50% year-over-year, and Etsy's data joins became up to 60% faster after migrating 3 petabytes of data.
- AI Cybersecurity Demand and PerformanceGoogle's Gemini Flash cyber models automated vulnerability discovery across 20 programming languages and patched vulnerabilities 2.6x more reliably than other models. Google Gemini and Threat Intelligence analyzed millions of external events daily with 98% accuracy, while more than 95% of Wiz customers adopted AI-powered features.
- TPU Performance and DemandTPU 8t and 8i offered up to 2.7x better training performance and 80% better inference price performance, respectively, versus the previous TPU generation. Nearly 100 customers were using TPUs, with strong demand from AI labs, capital markets firms, enterprises, universities and public-sector providers. Alphabet entered partnerships with Oracle and Crux AI to deliver TPU systems.
- Agentic Commerce and PartnershipsUniversal Commerce Protocol enabled direct checkout for hundreds of thousands of brands across Google, and Alphabet launched Universal Cart during the quarter. The company also expanded partnerships with American Express and Unity, including an expanded multiyear cloud deal with Unity.
- 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 Isomorphic's drug-design research, a quantum-computing milestone and the launch of TPUs into space through Project Suncatcher.
- Operating Income and Cash PositionAlphabet operating income increased 30% to $40.6 billion, with an operating margin of 31.8%. Operating cash flow was $42.3 billion in Q3 and $179.6 billion for the trailing 12 months. The company ended the quarter with $265.1 billion in cash and marketable securities.
- Continued AI Infrastructure InvestmentAlphabet's full-year 2026 CapEx guidance remained $195 billion to $205 billion, with the vast majority of third-quarter spending directed toward technical infrastructure supporting AI investments. The company expects CapEx to increase significantly in 2027.
DE:ABEA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 02, 2027 | 2026 (Q4) | 2.86- | 2.52 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 2.691.89 | 2.56 | -26.13% (-0.67) | |
| Jul 22, 2026 | 2026 (Q2) | 2.578.13 | 2.06 | 294.37% (+6.07) | |
| Apr 29, 2026 | 2026 (Q1) | 2.394.56 | 2.51 | 81.85% (+2.05) | |
| Feb 04, 2026 | 2025 (Q4) | 2.352.52 | 1.92 | 31.16% (+0.60) | |
| Oct 29, 2025 | 2025 (Q3) | 2.022.56 | 1.89 | 35.38% (+0.67) | |
| Jul 23, 2025 | 2025 (Q2) | 1.952.06 | 1.69 | 22.22% (+0.37) | |
| Apr 24, 2025 | 2025 (Q1) | 1.812.51 | 1.69 | 48.68% (+0.82) | |
| Feb 04, 2025 | 2024 (Q4) | 1.891.92 | 1.46 | 31.10% (+0.46) | |
| Oct 29, 2024 | 2024 (Q3) | 1.651.89 | 1.38 | 36.77% (+0.51) |
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