--- title: "Alphabet — Q3 2026 results (Exhibit 99.1)" url: https://stacklist.com/card/a1e84937-c60f-420f-a896-1e22ac4b9a2d source_url: "https://www.sec.gov/Archives/edgar/data/1652044/000165204426000080/googexhibit991q32026.htm" stack: https://stacklist.com/c/finance/stack/af94eecb-fc01-43a7-8b78-f12bfa15d76b summary: "Alphabet Inc. announced Q3 2026 financial results with consolidated revenues of $127.6 billion, up 25% year-over-year, driven by strong performance in Google Services and record 103% growth in Google Cloud revenues. The company achieved a half-trillion dollar revenue run rate with significant momentum in AI infrastructure, Gemini products reaching one billion users, and the highest search query growth in five years." tags: "alphabet, q3-2026, financial-results, google-cloud, ai-infrastructure, earnings" key_entities: "Alphabet Inc. (organization), Google (organization), Sundar Pichai (person), Google Cloud Platform (technology), Gemini (technology), TPU systems (technology), Mountain View, California (location), Q3 2026 Earnings Announcement (event)" classification: "reference" content_hash: "sha256:ffe7fda11525a6ff83c77edc7aae2c1875e2b6c0d73bcf969ffe6773146c2058" acp_version: "0.2" token_counts_approximate: 6240 visibility: public agent_accessible: true status: "final" --- # Alphabet — Q3 2026 results (Exhibit 99.1) Exhibit 99.1 Alphabet Announces Third Quarter 2026 Results MOUNTAIN VIEW, Calif. – October 28, 2026 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended September 30, 2026. • Consolidated Alphabet revenues increased 25% to $127.6 billion, reflecting strong performance across the business and our 13th consecutive quarter of double-digit revenue growth. • Google Services revenues increased 11% to $96.3 billion, led by 12% growth in Google Search & other with the year-over-year Search query growth rate the highest it has been in the last five years. • Google Cloud delivered record growth as revenues increased 103% to $30.7 billion, led by strong growth in Google Cloud Platform (GCP) across enterprise AI infrastructure and enterprise AI solutions, as well as core GCP services. TPU systems sales were also a meaningful contributor to revenue growth. • Consolidated Alphabet operating income increased 30% and operating margin was 31.8%. • Net income available to common stockholders was $26.2 billion and EPS was $2.12. Sundar Pichai, CEO of Google and Alphabet, said: “We had a strong quarter and are now on a half-trillion dollar revenue run rate. Our deep full stack approach is driving momentum across the business, with Alphabet revenues growing 25% year-over year. Our AI investments are driving overall Search query growth, including commercial queries. In fact, our year-over-year query growth rate is the highest it’s been in the last five years. Google Cloud revenues grew 103%, powered by huge demand for our AI infrastructure and AI solutions. We’re also seeing strong demand for our TPU systems across a wide range of customers. Gemini 4 Argon and Carbon are now leading at the frontier. Overall, our first-party model APIs are now processing nearly 32 billion tokens per minute, more than four times what we processed a year ago. On top of that, the Gemini app has reached one billion users—making it the fastest-growing product in Google’s history—and we surpassed 150 million YouTube Music and Premium subscribers globally, including trials. We’re excited by the range of big opportunities ahead of us.” Q3 2026 Financial Highlights (unaudited) The following table summarizes our consolidated financial results for the quarters ended September 30, 2025 and 2026 (in millions, except for per share information and percentages). Quarter Ended September 30, 2025 2026 Revenues $ 102,346  $ 127,577  Change in revenues year over year 16  % 25  % Change in constant currency revenues year over year (1) 15  % 25  % Operating income $ 31,228  $ 40,576  Operating margin 31  % 32  % Other income (expense), net $ 12,759  $ (8,221) Net income available to common stockholders $ 34,979  $ 26,170  Diluted net income per common share $ 2.87  $ 2.12  (1)     Non-GAAP measure. See the section captioned “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” for more details. Q3 2026 Supplemental Information (in millions, except for number of employees; unaudited) Revenues, Traffic Acquisition Costs (TAC), and Number of Employees Quarter Ended September 30, 2025 2026 Google Search & other $ 56,567  $ 63,350  YouTube ads 10,261  11,207  Google Network 7,354  7,455  Google advertising 74,182  82,012  Google subscriptions, platforms, and devices 12,870  14,290  Google Services total 87,052  96,302  Google Cloud 15,157  30,709  Other Bets 344  372  Hedging gains (losses) (207) 194  Total revenues $ 102,346  $ 127,577  Total TAC $ 14,876  $ 16,366  Number of employees 190,167 204,757 Segment Operating Results Quarter Ended September 30, 2025 2026 Operating income (loss): Google Services $ 33,527  $ 39,157  Google Cloud 3,594  11,121  Other Bets (1,426) (2,047) Alphabet-level activities (1) (4,467) (7,655) Total income from operations $ 31,228  $ 40,576  (1) Alphabet-level activities primarily reflect expenses related to our shared AI research and development. Additional Information Relating to the Quarter Ended September 30, 2026 (unaudited) At-the-Market Program During the three months ended September 30, 2026, we issued 12 million shares of Class A stock for net proceeds of $4.3 billion and 24 million shares of Class C stock for net proceeds of $8.1 billion. As of September 30, 2026, $27.6 billion remained available for future issuance under the ATM Program. Issuance of Senior Unsecured Notes In the third quarter of 2026, we issued senior unsecured notes for net proceeds of $28.7 billion, to be used for general corporate purposes. Preferred and Common Dividend Programs In October 2026, the company's Board of Directors declared a quarterly cash dividend of $15.63 per share on each of our Series A and Series B mandatory convertible preferred stock (equivalent to approximately $0.78 per share on each of our Series A and Series B Depositary Shares) and a quarterly cash dividend of $0.22 per share on our Class A, Class B, and Class C stock. The mandatory convertible preferred stock dividend is payable on November 15, 2026 to stockholders of record for each of the company's Series A and Series B shares as of November 1, 2026, and t he common stock dividend is payable on December 14, 2026 to stockholders of record for each of the company's Class A, Class B, and Class C shares as of December 7, 2026. 2 Webcast and Conference Call Information A live audio webcast of our third quarter 2026 earnings release call will be available on YouTube at https://www.youtube.com/watch?v=X9mmCagxJTo. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available at http://abc.xyz/investor. We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor). We also share Google news and product updates on Google's Keyword blog at https://www.blog.google/ and News From Google page on X at x.com/NewsFromGoogle, and our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest or material to our investors. Forward-Looki ng Statements This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 and our most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 , which are on file with the SEC and are available on our investor relations website at http://abc.xyz/investor and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, and may be set forth in other reports and filings we make with the SEC. All information provided in this release and in the attachments is as of October 28, 2026 . Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law. About Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: free cash flow; constant currency revenues; and percentage change in constant currency revenues. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign exchange rate movements and hedging activities, which are recognized at the consolidated level. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP. For more information on these non-GAAP financial measures, please see the sections captioned “Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow” and “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” included at the end of this release. Contact Investor relations Media investor-relations@abc.xyz press@abc.xyz 3 Alphabet Inc. CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts) As of December 31, 2025 As of September 30, 2026 (unaudited) Assets Current assets: Cash and cash equivalents $ 30,708  $ 56,334  Marketable securities 96,135  208,764  Total cash, cash equivalents, and marketable securities 126,843  265,098  Accounts receivable, net 62,886  72,784  Inventory 2,439  13,308  Other current assets 13,870  23,475  Total current assets 206,038  374,665  Non-marketable securities 68,687  135,230  Deferred income taxes 9,113  1,458  Property and equipment, net 246,597  372,827  Operating lease assets 15,221  20,273  Goodwill 33,380  58,117  Intangible assets, net 1,283  8,817  Other non-current assets 14,962  31,925  Total assets $ 595,281  $ 1,003,312  Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 12,200  $ 21,975  Accrued compensation and benefits 17,546  17,729  Accrued expenses and other current liabilities 55,557  74,317  Accrued revenue share 10,864  11,051  Deferred revenue 6,578  9,429  Total current liabilities 102,745  134,501  Long-term debt 46,547  125,102  Income taxes payable, non-current 9,531  12,219  Deferred income taxes 919  27,833  Operating lease liabilities 12,744  16,815  Other long-term liabilities 7,530  9,293  Total liabilities 180,016  325,763  Commitments and contingencies Stockholders’ equity: Series A and Series B preferred stock and additional paid-in capital, $0.001 par value per share, 100 shares authorized; 6.25% mandatory convertible preferred stock, 0 and 19 shares issued and outstanding allocated equally between each series with a liquidation preference of $1,000 per share 0  18,023  Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share: 300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,088 (Class A 5,822, Class B 837, Class C 5,429) and 12,294 (Class A 5,888, Class B 828, Class C 5,578) shares issued and outstanding 93,126  147,068  Accumulated other comprehensive income (loss) (1,916) (4,326) Retained earnings 324,055  516,784  Total stockholders’ equity 415,265  677,549  Total liabilities and stockholders’ equity $ 595,281  $ 1,003,312  4 Alphabet Inc. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts, unaudited) Quarter Ended September 30, Year To Date September 30, 2025 2026 2025 2026 Revenues $ 102,346  $ 127,577  $ 289,007  $ 357,269  Costs and expenses: Cost of revenues 41,369  51,419  116,768  138,633  Research and development 15,151  20,640  42,515  55,891  Sales and marketing 7,205  8,804  20,478  24,813  General and administrative 7,393  6,138  16,141  16,890  Total costs and expenses 71,118  87,001  195,902  236,227  Income from operations 31,228  40,576  93,105  121,042  Other income (expense), net 12,759  (8,221) 26,604  127,478  Income before income taxes 43,987  32,355  119,709  248,520  Provision for income taxes 9,008  5,887  21,994  47,281  Net income 34,979  26,468  97,715  201,239  Preferred stock dividends 0  298  0  384  Net income available to common stockholders $ 34,979  $ 26,170  $ 97,715  $ 200,855  Basic net income per common share $ 2.89  $ 2.14  $ 8.06  $ 16.51  Diluted net income per common share $ 2.87  $ 2.12  $ 7.99  $ 16.33  Number of shares used in basic net income per common share calculation 12,086  12,256  12,130  12,169  Number of shares used in diluted net income per common share calculation 12,203  12,368  12,230  12,324  5 Alphabet Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions, unaudited) Quarter Ended September 30, Year To Date September 30, 2025 2026 2025 2026 Operating activities Net income $ 34,979  $ 26,468  $ 97,715  $ 201,239  Adjustments: Depreciation of property and equipment 5,611  8,369  15,096  21,955  Stock-based compensation expense 6,368  8,630  17,882  23,338  Deferred income taxes 8,726  5,539  7,130  33,077  Loss (gain) on debt and equity securities, net (10,855) 9,048  (22,266) (126,755) Other (198) 1,664  843  4,825  Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable, net (2,381) (3,917) (3,582) (10,821) Inventory (526) (3,220) (1,154) (10,959) Income taxes, net (858) (3,702) (3,292) 4,602  Other assets (767) (7,807) (2,906) (17,757) Accounts payable (444) (165) (771) 1,925  Accrued expenses and other liabilities 8,078  (1,168) 6,299  (860) Deferred revenue 681  2,551  1,317  3,340  Net cash provided by operating activities 48,414  42,290  112,311  127,149  Investing activities Purchases of property and equipment (23,953) (51,355) (63,596) (131,953) Purchases of marketable securities (20,964) (39,987) (60,834) (116,467) Maturities and sales of marketable securities 20,371  21,820  61,301  88,516  Purchases of non-marketable securities (1,000) (2,109) (3,312) (24,160) Maturities and sales of non-marketable securities 323  208  1,196  1,875  Acquisitions, net of cash acquired, and purchases of intangible assets (1,072) (406) (1,425) (34,103) Other investing activities (1,482) 480  (1,845) (879) Net cash used in investing activities (27,777) (71,349) (68,515) (217,171) Financing activities Net payments related to stock-based award activities (3,270) (5,368) (9,001) (17,424) Repurchases of stock (11,504) 0  (39,810) 0  Dividend payments on preferred and common stock (2,537) (2,936) (7,513) (8,167) Proceeds from issuance of common stock, net of costs 0  12,371  0  42,870  Proceeds from issuance of mandatory convertible preferred stock, net of costs 0  0  0  19,063  Proceeds from issuance of debt, net of costs 6,624  28,996  38,002  85,222  Repayments of debt (7,696) (3,626) (26,094) (8,879) Proceeds from sale of interest in consolidated entities, net 0  0  400  3,758  Other financing activities 0  0  (400) (686) Net cash provided by (used in) financing activities (18,383) 29,437  (44,416) 115,757  Effect of exchange rate changes on cash and cash equivalents (200) 45  244  (109) Net increase (decrease) in cash and cash equivalents 2,054  423  (376) 25,626  Cash and cash equivalents at beginning of period 21,036  55,911  23,466  30,708  Cash and cash equivalents at end of period $ 23,090  $ 56,334  $ 23,090  $ 56,334  6 Segment Results The following table presents our segment revenues and operating income (loss) (in millions; unaudited): Quarter Ended September 30, 2025 2026 Revenues: Google Services $ 87,052  $ 96,302  Google Cloud 15,157  30,709  Other Bets 344  372  Hedging gains (losses) (207) 194  Total revenues $ 102,346  $ 127,577  Operating income (loss): Google Services $ 33,527  $ 39,157  Google Cloud 3,594  11,121  Other Bets (1,426) (2,047) Alphabet-level activities (4,467) (7,655) Total income from operations $ 31,228  $ 40,576  We report our segment results as Google Services, Google Cloud, and Other Bets: • Google Services includes products and services such as ads, Android, Chrome, consumer devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases; and consumer devices. • Google Cloud includes infrastructure and platform services, applications, and other products and services for enterprise customers. Google Cloud generates services revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services. Google Cloud generates product revenues primarily from the sale of TPU systems. • Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of autonomous transportation services and internet services. Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include: • certain AI-focused shared research and development activities, including employee compensation expenses and technical infrastructure usage costs associated with the development of our general AI models; • corporate initiatives such as our philanthropic activities; and • corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements. Charges associated with employee severance and office space reductions are also not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments. 7 Other Income (Expense), Net The following table presents our other income (expense), net (in millions; unaudited): Quarter Ended September 30, 2025 2026 Interest income $ 1,076  $ 1,768  Interest expense (143) (967) Foreign currency exchange gain (loss), net (143) 22  Gain (loss) on debt securities, net 122  (383) Gain (loss) on equity securities, net (1) 10,734  (8,664) Income (loss) and impairment from equity method investments, net (30) (143) Other 1,143  146  Other income (expense), net $ 12,759  $ (8,221) (1) Includes all gains and losses, unrealized and realized, on equity securities. For Q3 2026, the net effect of the loss on equity securities of $8.7 billion decreased the provision for income tax, net income, and diluted net income per common share by $1.9 billion, $6.7 billion, and $0.55, respectively. Fluctuations in the value of our investments may be affected by market dynamics and other factors and could significantly contribute to the volatility of OI&E in future periods. Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (in millions; unaudited) : We provide non-GAAP free cash flow for the current quarter and trailing twelve months (“TTM”) because it is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet. Quarter Ended TTM Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q3 2026 Net cash provided by operating activities $ 52,402  $ 45,790  $ 39,069  $ 42,290  $ 179,551  Less: purchases of property and equipment (27,851) (35,674) (44,924) (51,355) (159,804) Free cash flow $ 24,551  $ 10,116  $ (5,855) $ (9,065) $ 19,747  Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures. TTM free cash flow: We define trailing twelve months free cash flow as net cash provided by operating activities less capital expenditures for the most recent twelve consecutive months. Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues (in millions, except percentages; unaudited) : We provide non-GAAP constant currency revenues (“constant currency revenues”) and non-GAAP percentage change in constant currency revenues (“percentage change in constant currency revenues”), because they facilitate the comparison of current results to historic performance by excluding the effect of foreign exchange rate movements (“FX Effect”) as well as hedging activities, which are recognized at the consolidated level, as they are not indicative of our core operating results. Non-GAAP constant currency revenues is defined as revenues excluding the effect of foreign exchange rate movements and hedging activities and is calculated by translating current period revenues using prior period exchange rates and excluding any hedging effect recognized in the current period. We calculate the percentage change in constant currency revenues by comparing constant currency revenues to the prior year comparable period revenues, excluding any hedging effect recognized in the prior period. 8 Revenues by Geography Comparison from the Quarter Ended September 30, 2025 to the Quarter Ended September 30, 2026 Quarter Ended September 30, 2026 % Change from Prior Period Quarter Ended September 30, Less FX Effect Constant Currency Revenues As Reported Less Hedging Effect Less FX Effect Constant Currency Revenues 2025 2026 United States $ 48,758  $ 67,681  $ 0  $ 67,681  39  % 0  % 39  % EMEA 29,911  32,695  (336) 33,031  9  % (1) % 10  % APAC 17,819  19,906  (517) 20,423  12  %