# GOOGL Release review · Q3 2026

> Alphabet reported. Sales $127.6B vs our $127.6B, miss −0.1%. Adjusted EPS $2.67 vs our $2.94, miss −27¢. After the call we forecast again.

Canonical: https://pricedin.markets/googl/fq3-2026/result/

Wednesday 28 October, 16:01 ET · released

Alphabet reported. Sales $127.6B vs our $127.6B, miss −0.1%. Adjusted EPS $2.67 vs our $2.94, miss −27¢. After the call we forecast again.

[After the call →](https://pricedin.markets/googl/fq3-2026/after-call/)

GOOGL · Q3 2026 results · release accepted 2026-10-28 16:01:33 ET

## The quarter against our forecast

Q3 2026 sales **$127.6B** our forecast $127.6B · −0.1%

adjusted EPS **$2.67** our forecast $2.94 · −27¢

#### Q3 2026 line by line, as the income statement shows it

| Line | Outlook | Our forecast | Reported | Against our forecast |
| --- | --- | --- | --- | --- |
| Revenues | — | $127.6B | $127.6B | −0.1% miss |
| Google Services | — | $98.8B | $96.3B | −2.5% miss |
| Google Cloud | — | $28.5B | $30.7B | +7.8% beat |
| Other Bets | — | $400M | $372M | −7.0% miss |
| Hedging gains (losses) | — | $18.3M | — | with the 10-Q |
| Cost of revenues | — | $49.9B | $51.4B | +2.9% miss |
| Research and development | — | $19.5B | $20.6B | +6.0% miss |
| Sales and marketing | — | $8.85B | $8.80B | −0.6% beat |
| General and administrative | — | $5.86B | $6.14B | +4.7% miss |
| Total costs and expenses | — | $84.1B | $87.0B | +3.4% miss |
| Income from operations | — | $43.5B | $40.6B | −6.8% miss |
| Operating margin | — | 34.1% | 31.8% | −2.3 pt miss |
| Other income (expense), net | — | $2.43B | −$8.22B | −437.8% miss |
| Income before income taxes | — | $45.9B | $32.4B | −29.6% miss |
| Provision for income taxes | — | $8.20B | $5.89B | −28.2% beat |
| Tax rate | — | 17.8% | 18.2% | +0.4 pt miss |
| Net income | — | $37.8B | $26.5B | −29.9% miss |
| Net income available to common stockholders | — | $37.5B | $26.2B | −30.1% miss |
| Number of shares used in diluted net income per common share calculation | — | 12.39B | — | with the 10-Q |
| Adjusted EPS | — | $2.94 | $2.67 | −27¢ miss |

Our forecast was frozen before the release: the average of 6 models as of 2026-10-27 03:39:04 ET. Each reported number is quoted from the release; the 10-Q's tagged facts confirm the statement's lines when it is filed. Read before our lock: the SEC lists the release in its index that night, and the next check confirms its bytes. A cost above our forecast is a miss.

#### Why adjusted EPS differs: $2.67 against our $2.94

Sales, at the forecast's gross margin −0.6¢

Gross margin +0.0¢

Cost of revenues −11.9¢

Research and development −9.4¢

Sales and marketing +0.4¢

General and administrative −2.2¢

Other income (expense), net −5.3¢

Provision for income taxes +16.3¢

Net income available to common stockholders −0.1¢

Tax on the adjustments, the share count and rounding −14.4¢

Total −27.3¢

Like for like: each line as reported against ours, with each of the company's adjustments on the line it adjusts and ours on ours. The last bar is what remains: the tax on the adjustments, the share count and rounding.

#### The company's new outlook

The release states no outlook for any later period.

Our Q4 2026 forecast, made 2026-10-27 before this release sales $142.7B · adjusted EPS $3.22

Each item as the release prints it. Our forecast stands beside an item only when the item is one of our two numbers, for our quarter or year, in our unit.

#### The company's reasons, from the release

- **Consolidated revenue growth** “•Consolidated Alphabet revenues increased 25% to $127.6 billion, reflecting strong performance across the business and our 13th consecutive quarter of double-digit revenue growth.”
- **Google Services revenue growth** “•Google Services revenues increased 11% to $96.3 billion, led by 12% growth in Google Search & other with the year-over-year Search query growth rate the highest it has been in the last five years.”
- **Google Cloud revenue growth** “•Google Cloud delivered record growth as revenues increased 103% to $30.7 billion, led by strong growth in Google Cloud Platform (GCP) across enterprise AI infrastructure and enterprise AI solutions, as well as core GCP services. TPU systems sales were also a meaningful contributor to revenue growth.”
- **Search query growth** “Our AI investments are driving overall Search query growth, including commercial queries. In fact, our year-over-year query growth rate is the highest it’s been in the last five years.”
- **Cloud revenue growth drivers** “Google Cloud revenues grew 103%, powered by huge demand for our AI infrastructure and AI solutions. We’re also seeing strong demand for our TPU systems across a wide range of customers.”
- **Net income impacted by equity securities loss** “(1)Includes all gains and losses, unrealized and realized, on equity securities. For Q3 2026, the net effect of the loss on equity securities of $8.7 billion decreased the provision for income tax, net income, and diluted net income per common share by $1.9 billion, $6.7 billion, and $0.55, respectively. Fluctuations in the value of our investments may be affected by market dynamics and other factors and could significantly contribute to the volatility of OI&E in future periods.”