Overall, Alphabet posted revenue of $127.6 billion (up 25%) and net income of $26.17 billion (down 25%), translating to earnings per share of $2.12. That fell short of Wall Street consensus estimates of $128.2 billion in revenue and EPS of $3.02, per LSEG data. Alphabet’s Q3 2026 loss included a net loss on equity securities of $8.7 billion. Google Cloud delivered record growth as revenue increased 103% to $30.7 billion.
Like other AI “hyperscalers,” Alphabet is spending heavily on building out capacity for artificial intelligence applications. The company’s capital expenditures in Q3 totaled $51.36 billion, up 114% year over year. In July, the company raised full-year 2026 capex guidance to $195 billion-$205 billion, up from its previous projection of $180 billion-$190 billion, driven by AI data center buildouts. That capex guidance for 2026 remained unchanged while Alphabet continues to expect capital spending to “significantly” increase in 2027, according to CFO Anat Ashkenazi.
