Q3 2026 earnings call: Remarks from our CEO
Key takeaways
- Alphabet’s Q3 earnings confirm AI is driving robust revenue growth across Cloud, Search, and YouTube, with new Gemini models and a billion‑user app setting the stage for continued expansion.
- Revenue up 25% to a half‑trillion‑dollar annual run rate
YoY
Year over year — compared with the same period last year.
- Cloud revenue grew 103%
YoY
Year over year — compared with the same period last year.
- Search query growth rate highest in five years
What happened
Alphabet reported a strong Q3 2026, with revenues up 25% Year over year — compared with the same period last year.YoY
Why it matters
The earnings show Alphabet’s AI strategy is accelerating revenue across its core businesses, especially Cloud and Search. The 103% Cloud growth signals strong enterprise demand for AI‑powered services, and the rapid adoption of Gemini models indicates a shift toward higher‑margin AI products. Record query growth and…
Short-term and longer-term
Short-term. Over the next few days, watch for price reactions to the AI product announcements, especially the Gemini app’s user growth and the Cloud revenue beat.
Longer-term. For the coming months, Alphabet’s continued AI investment—particularly in Gemini models and TPU capacity—could drive higher margin revenue streams and reinforce its leadership in AI services.
Words on this card
- AI infrastructure
- Hardware and software systems that support artificial intelligence workloads, such as TPUs and cloud services.
- TPU
- Tensor Processing Unit, a custom chip designed by Alphabet for machine learning tasks.
- Gemini app
- Alphabet’s AI‑powered application that allows users to interact with advanced language models.
- Agentic experiences
- Features that enable AI to perform actions on behalf of users, like booking reservations or filling forms.
- Waymo
- Alphabet’s autonomous vehicle subsidiary.
- YoY
- Year over year — compared with the same period last year.