The Yusuf İpek channel’s weekly report examines Alphabet’s third-quarter results alongside the market reaction. Alphabet’s October 28 earnings release covers the quarter ended September 30, 2026: revenue reached $127.577 billion, up 25% year over year.
Cloud grows faster than Search
Google Cloud revenue rose 103% to $30.709 billion. Search and other revenue grew 12% to $63.350 billion. Search therefore remained a growing business even as faster expansion elsewhere reduced its share of the total. The two reported figures put Search just below half of consolidated revenue.
Capital expenditure weighs on free cash flow
The release reports $42.290 billion of operating cash flow and $51.355 billion of property and equipment purchases for the quarter. Their difference produced negative free cash flow of $9.065 billion, a non-GAAP measure.
Alphabet reported $40.576 billion in operating income. Net income available to common shareholders was $26.170 billion, or $2.12 per diluted share.
Google’s account of the growth
In his earnings remarks, Sundar Pichai connected cloud momentum to enterprise AI infrastructure and solutions. The company also identified TPU systems sales as a contributor. The channel places these expanding businesses and infrastructure spending at the centre of his discussion of the quarter.
