Alphabet's Cloud Revenue Doubles in a Year to $30.7 Billion

Alphabet has reported its third-quarter 2026 results. For the July-September period, the company generated $127.6 billion in revenue, up 25 percent from $102.3 billion in the same quarter a year earlier.

The standout line item was Google Cloud. Revenue at the cloud unit rose 103 percent year over year to $30.71 billion, compared with $15.16 billion a year earlier. In other words, the unit roughly doubled its revenue in a single year.

Revenue, operating income and net profit

According to the company's figures, operating income for the quarter was $40.58 billion and net profit was $26.17 billion. Net profit came in below the $34.9 billion recorded in the same quarter last year, meaning that while revenue grew 25 percent, net profit fell year over year. For comparison, the previous quarter saw revenue of $119.8 billion and net profit of $112.1 billion.

Management said the company has reached an annual revenue run rate of half a trillion dollars. Alphabet attributes the growth to its full-stack approach and its AI investments, and the statement once again stressed that company revenue grew 25 percent year over year.

AI demand spills over into search and cloud

The company said its AI investments are supporting overall growth in search queries, including commercial queries. Management described the annual query growth rate as the highest in the past five years.

The surge at Google Cloud was credited to strong demand for AI infrastructure and AI solutions. The company also said it is seeing strong demand for its TPU systems from a broad range of customers.

Management says the Gemini 4 Argon and Carbon models now hold a leading position at the frontier level, an assessment that is the company's own. The company's first-party model APIs are processing roughly 32 billion tokens per minute, more than four times the volume a year earlier.

Gemini, YouTube and other businesses

The company said the Gemini app has reached one billion users, which it called the fastest-growing product in Google's history. It also said the number of YouTube Music and Premium subscribers worldwide, including trials, has passed 150 million.

YouTube advertising revenue came in at $11.2 billion, up from $10.26 billion in the same quarter last year. The subscriptions, platforms and devices category, which covers hardware, Google Play and non-advertising YouTube revenue, brought in $14.29 billion, compared with $12.87 billion a year earlier.

Other Bets, which continues to lose money, generated $372 million in revenue, up from $344 million in the third quarter of last year. Its loss widened from $1.4 billion to $2.04 billion.

Taken as a whole, the cloud unit accounted for the largest share of the company's growth. The year-over-year decline in net profit and the growing loss at Other Bets were the other notable items of the quarter. Management said there are "big opportunities" ahead and that it is excited about them.