Alphabet reported Q3 2026 revenue of $127.58 billion on October 28, up 25% from a year earlier, as Google Cloud revenue more than doubled to $30.71 billion.Diluted EPS fell to $2.12 from $2.87, and frAlphabet reported Q3 2026 revenue of $127.58 billion on October 28, up 25% from a year earlier, as Google Cloud revenue more than doubled to $30.71 billion.Diluted EPS fell to $2.12 from $2.87, and fr
Alphabet (GOOGL) Q3 2026 Earnings: Google Cloud Revenue Doubles as Free Cash Flow Turns Negative
Alphabet reported Q3 2026 revenue of $127.58 billion on October 28, up 25% from a year earlier, as Google Cloud revenue more than doubled to $30.71 billion.
Diluted EPS fell to $2.12 from $2.87, and free cash flow turned negative at $9.07 billion after capital expenditures more than doubled to $51.36 billion.
Shares fell about 10% in extended trading, Reuters reported, as investors weighed slower search growth against the cost of the AI buildout.
On MEXC, the GOOGLUSDT perpetual contract dropped 8.7% in the first hour after the release and was down 9.1% by 9:00 p.m. ET.
Key Takeaways
- Revenue: $127.58 billion, up 25%, slightly below the $128.2 billion LSEG estimate.
- Google Cloud: Revenue up 103% to $30.71 billion, operating margin up to 36.2% from 23.7%, and a $561 billion backlog.
- Search: Google Search & other grew 12% to $63.35 billion; total ad revenue of $82.01 billion trailed the $83.4 billion expected.
- Cash: Q3 capex reached $51.36 billion and free cash flow was negative $9.07 billion; Alphabet bought back no shares.
- Outlook: 2026 capex guidance held at $195–205 billion, with a significant increase signaled for 2027.
- MEXC reaction: GOOGLUSDT fell from 326.03 to 297.81 USDT in the first hour, on turnover 84 times the same hour a day earlier.
Alphabet Q3 2026 Results at a Glance
All company figures below come from Alphabet's Q3 2026 earnings release.
- Revenue: $127.58 billion, up 25% (also 25% in constant currency), the 13th straight quarter of double-digit growth.
- Operating income: $40.58 billion, up 30%, for an operating margin of 31.8%.
- Net income: $26.17 billion, down 25%.
- Diluted EPS: $2.12, compared with $2.87 a year earlier.
- Capital expenditures: $51.36 billion, compared with $23.95 billion.
- Dividend: $0.22 per share, payable December 14 to holders of record on December 7.
Why Did Alphabet's EPS Fall Despite 25% Revenue Growth?
EPS fell because of an $8.66 billion loss on equity securities, not because the operating business weakened.
The loss turned other income into an $8.22 billion expense, against a $12.76 billion gain a year earlier.
Alphabet says it cut net income by $6.7 billion and diluted EPS by $0.55.
Adding that back gives the $2.67 adjusted figure analysts compared with an expected $3.02, so earnings still missed after the adjustment.
Operating costs rose fast: the loss at Alphabet-level activities widened to $7.66 billion from $4.47 billion, and Other Bets lost $2.05 billion.
Google Cloud Doubles, Search Growth Cools
Google Cloud was the standout. Revenue rose 103% to $30.71 billion, accelerating from 82% growth in Q2, and operating income tripled to $11.12 billion.
On the call, Cloud chief Thomas Kurian said sales of Google's TPU chips had become a meaningful contributor, and Alphabet put Cloud's backlog at $561 billion, with more than 55% expected to be recognized within 24 months, according to Reuters.
That beat the roughly 92% growth our Alphabet Q3 2026 earnings preview had flagged as the bar.
Advertising grew more slowly.
- Google Search & other: $63.35 billion, up 12%.
- YouTube ads: $11.21 billion, up 9%.
- Google Network: $7.46 billion, up 1%.
- Subscriptions, platforms and devices: $14.29 billion, up 11%.
Total advertising revenue of $82.01 billion fell short of the $83.4 billion analysts expected.
That gap matters because Search still produces most of Alphabet's profit: Google Services earned $39.16 billion of operating income, against $11.12 billion from Cloud.
AI usage kept climbing. CEO Sundar Pichai said the Gemini app has reached 1 billion users, up from 950 million monthly active users in Q2, and first-party models now process nearly 32 billion tokens a minute through APIs.
AI Spending and the Cash Flow Turn
Capex rose 14% from Q2's $44.92 billion and more than doubled from a year earlier.
Operating cash flow fell to $42.29 billion, so free cash flow came in at negative $9.07 billion, wider than Q2's negative $5.86 billion.
Analysts had expected free cash flow near breakeven, Reuters reported.
Alphabet made no share repurchases in the quarter, against $11.50 billion a year earlier.
It also raised capital: it sold $4.3 billion of Class A shares and $8.1 billion of Class C shares through its at-the-market program, and raised $28.7 billion net from senior notes.
It still ended September with $265.10 billion in cash and marketable securities.
What Alphabet Said About Capex for 2026 and 2027
CFO Anat Ashkenazi kept 2026 capex guidance at $195 billion to $205 billion, the range set in Q2.
She said capex will increase significantly in 2027, without giving a figure, and warned that building TPU inventory will add pressure on free cash flow.
For investors, the question is now timing: the $561 billion backlog shows demand, but the cash cost arrives first.
How GOOGL Futures Reacted on MEXC
GOOGLUSDT on MEXC moved with the stock as soon as the release crossed, and kept trading through the US night.
MEXC GOOGLUSDT hourly closes and turnover from 8:00 a.m. to 9:00 p.m. ET on October 28, 2026. Source: MEXC
Price: the contract closed the 3:00–4:00 p.m. ET hour at 326.03 USDT, then fell to 297.81 by 5:00 p.m., down 8.66%. It touched 288.24 between 5:00 and 6:00 p.m., down 11.6% at the low, and stood at 296.41 at 9:00 p.m., down 9.09%.
Trading activity: first-hour turnover was about 10.26 million USDT, 84 times the same hour a day earlier and 47.5 times the hourly average of the preceding 24 hours. The five hours after the close traded about 17.41 million USDT, five times the 3.38 million USDT traded from 9:00 a.m. to 4:00 p.m. ET.
Premium to index: hourly closes stayed within about 10 basis points of the index price, so the move tracked the underlying stock rather than contract-specific pressure.
Funding: GOOGLUSDT settles every eight hours. The first settlement after the release, at 00:00 UTC on October 29, came in at 0.0666%, up from 0.0143% before the report and the highest of the past eight settlements. Positive funding is a cost to longs, not a count of bullish traders.
Following GOOGL Through MEXC
The GOOGLUSDT perpetual contract on MEXC offers a 24/7 market to follow Alphabet around earnings and outside Nasdaq hours, as covered in this guide to trading stock futures on MEXC.
Alphabet exposure is also available on MEXC spot through GOOGLON, a tokenized representation of Alphabet Class A stock.
For eligible users considering share ownership, MEXC RealStocks is a separate route; check availability and supported securities directly.
Perpetual contracts do not confer shareholder rights, including dividends, and carry funding, leverage and liquidation risks.
Alphabet's report dates and past reactions are tracked on our Google earnings date page.
FAQ
Did Alphabet beat earnings expectations in Q3 2026?
No. Revenue of $127.58 billion was slightly below the $128.2 billion LSEG estimate, and adjusted EPS of $2.67 missed the expected $3.02. Google Cloud beat, with revenue up 103%.
Why did Alphabet stock fall after Q3 2026 earnings?
Shares fell about 10% after hours as search growth slowed to 12%, ad revenue missed estimates and free cash flow turned negative at $9.07 billion, with Alphabet signaling a significant capex increase in 2027.
How much did Google Cloud grow in Q3 2026?
Google Cloud revenue rose 103% to $30.71 billion, and operating income rose to $11.12 billion, a 36.2% margin. Its backlog stood at $561 billion.
What is Alphabet's capex guidance?
Alphabet expects 2026 capital expenditures of $195 billion to $205 billion and said 2027 capex will increase significantly, without a figure.
Why was Alphabet's EPS lower than last year?
An $8.66 billion loss on equity securities cut diluted EPS by $0.55. Reported EPS was $2.12, compared with $2.87 in Q3 2025.
How did GOOGL futures react on MEXC?
GOOGLUSDT fell 8.66% in the first hour after the release and was down 9.09% at 9:00 p.m. ET, on first-hour turnover 84 times the same hour a day earlier.
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