Alphabet Revenue Rises 25% as Net Income Falls

Alphabet reported third-quarter revenue of $127.58 billion, up 25% from a year earlier, as Google Cloud revenue more than doubled. Net income fell to $26.17 billion from $34.98 billion, and diluted earnings per share declined to $2.12 from $2.87, according to results for the three months ended September 30, 2026. Google Cloud generated $30.71 billion in revenue, a 103% increase from $15.16 billion in the same quarter last year. Alphabet said demand for enterprise artificial-intelligence infrastructure and solutions drove growth, with sales of its Tensor Processing Unit systems also contributing. Operating income rose 30% to $40.58 billion. Alphabet said losses on equity securities reduced net income by $6.7 billion and diluted earnings per share by 55 cents. The company’s reported results therefore showed rising revenue and operating income alongside lower net income and per-share earnings. Google Services revenue increased 11% to $96.3 billion. Search and other revenue rose 12% to $63.35 billion. Chief Executive Sundar Pichai said Search query growth reached its fastest year-over-year pace in five years and attributed business momentum to Alphabet’s investments in AI. YouTube...