Google reported its earnings today, with its Q3 2026 earnings report showing search ad revenues up by 10.5% at $82 billion and overall revenue up 25% at $127.6 billion, according to Search Engine Roundtable.
Key takeaways
- Google search ad revenue grew 10.5% to $82 billion, up from about $74 billion a year ago.
- Alphabet revenues grew 25% year-over-year as the company hits a half-trillion dollar revenue run rate.
- Google Cloud revenues grew 103% due to high demand for AI infrastructure and solutions.
- The Gemini app reached one billion users, becoming the fastest-growing product in company history.
- Google stock dropped in after-hours trading following the report.
What are the main financial results for google ad revenue in Q3 2026?
Search Engine Roundtable reports that search ad revenues reached $82 billion, representing a 10.5% increase compared to about $74 billion a year ago. When comparing Q3 2026 to Q2 2026, ad revenue was up 0.5%, overall revenue grew by 6.5%, and profit dropped 0.5%. Meanwhile, Alphabet’s search revenue totaled $63.35 billion, missing analyst estimates of $64.96 billion from FactSet.
Operating income hit $40.58 billion, falling short of a $43.19 billion forecast from FactSet. Google's free cash flow fell during the third quarter to $9.07 billion, missing the $2.70 billion expected by analysts.
How did Alphabet earnings and cloud services perform?
CEO Sundar Pichai stated in the report, "We had a strong quarter and are now on a half-trillion dollar revenue run rate." Alphabet revenues grew 25% year-over-year. Google Cloud revenues surged 103%, driven by massive demand for AI infrastructure, AI solutions, and TPU systems across a wide range of customers.
First-party model APIs now process nearly 32 billion tokens per minute, which is more than four times the volume from a year ago. Frontier models such as Argon and Carbon are currently leading, and YouTube Music and Premium subscribers surpassed 150 million globally including trials.
What happens next after the earnings report?
Google stock price dropped following the release of the earnings figures. The share price initially fell 7% in after-hours trading before dropping further to over 11% down, as tracked by Barry Schwartz. Despite the market reaction, the company highlights rapid growth in query rates, commercial searches, and artificial intelligence integration across its core services.
Frequently asked questions
Google search ad revenue grew by 10.5% to reach $82 billion in Q3 2026, up from about $74 billion a year ago, according to Search Engine Roundtable.
Overall revenue for Alphabet was up 25% year-over-year at $127.6 billion during the third quarter of 2026.
Google Cloud revenues grew by 103%, powered by huge demand for AI infrastructure, AI solutions, and TPU systems from a wide range of customers.
The Gemini app has reached one billion users, making it the fastest-growing product in Google's history.
Google's stock price fell in after-hours trading, dropping initially by 7% and later falling past 11% following the release of the earnings report.
Based on reporting by Search Engine Roundtable. Read the original article
