Alphabet Inc. Q3 2026 Earnings Recap

Alphabet’s shares fell 12.6% after earnings, despite rapid revenue growth; the transcript points to a likely concern that Cloud’s 103% growth is constrained by capacity, with management saying it is working to bring more capacity online. The excerpt offers little financial outlook detail to explain the selloff, so the precise driver is unclear.

Key Takeaways

• Alphabet revenue grew 25% year over year; Pichai said the company is at a $0.5 trillion annual run rate.
• Google Cloud revenue grew 103%, driven by AI infrastructure and solutions. Management cited strong demand and capacity constraints.
• Search query growth reached its highest year-over-year rate in five years, according to Pichai; queries in AI Mode are three times longer on average than traditional searches.
• Gemini’s first-party model APIs processed nearly 32 billion tokens per minute, up 40% from the prior quarter and more than fourfold from a year ago; the Gemini app reached 1 billion users.
• YouTube Music and Premium surpassed 150 million subscribers globally, including trials. Waymo said it operates in 15 U.S. cities and has driven more than 300 million fully autonomous miles.