Alphabet Inc. Q3 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Alphabet Q3 2026 Earnings Summary

Overall Performance: Strong quarter with 13th consecutive quarter of double-digit revenue growth. Revenues reached $127.6 billion (+25% YoY, both reported and constant currency), achieving a $0.5 trillion annual run rate. Operating income rose 30% YoY to $40.6 billion (margin 31.8%). Net income and EPS declined due to a $8.2 billion unrealized loss from SpaceX investment. Operating cash flow was $42.3 billion in Q3 ($179.6 billion TTM); free cash flow was negative $9.1 billion due to elevated CapEx.

Key Financial Metrics (YoY Comparisons)

  • Total Revenues: $127.6B (+25% vs. Q3 2025)
  • Total Cost of Revenue: $51.4B (+24%)
  • Operating Expenses: $35.6B (+20%)
  • Operating Income: $40.6B (+30% vs. Q3 2025)
  • CapEx: $51.4B (vast majority in AI infrastructure); FY2026 guidance unchanged at $195-205B
  • Cash & Marketable Securities: $265.1B (includes $90.4B equity securities)
  • Long-term Debt: $125.1B

Segment Performance

Professional feature The full AI summary covers key highlights, financial performance and analyst Q&A.
Operator: Welcome, everyone. Thank you for standing by for the Alphabet Third Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jim Friedland, Head of Investor Relations. Please go ahead. James Friedland: Thank you. Good afternoon, everyone, and welcome to Alphabet's Third Quarter 2026 Earnings Conference Call. With us today are Sundar Pichai, Philipp Schindler, Thomas Kurian and Anat Ashkenazi. Now I'll quickly cover the safe harbor. Some of the statements that we make today regarding our business, operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Forms 10-K and 10-Q, including the risk factors. We undertake no obligation to update any forward-looking statement. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our Investor Relations website located at abc.xyz/investor. Our comments will be on year-over-year comparisons unless we state otherwise. And now I'll turn the call over to Sundar. Sundar Pichai: Thanks, Jim, and hello, everyone. Q3 was a strong quarter for Alphabet. Our deep full stack approach is driving momentu
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