Google Cloud Revenue More Than Doubles as Alphabet Reports $127.6 Billion Quarter
Alphabet's cloud business grew 103% as demand for AI computing rose, while heavy infrastructure spending pushed quarterly free cash flow below zero.
By Reuven
Google Cloud's quarterly revenue more than doubled as Alphabet reported $127.6 billion in total revenue for the three months ended September 30, 2026, reflecting strong demand for artificial intelligence infrastructure and services.
The cloud unit brought in $30.7 billion, up 103% from a year earlier, according to Alphabet's earnings release. Total company revenue rose 25%, while operating income increased to $40.6 billion from $31.2 billion.
Google's core advertising business also grew. Search and other advertising revenue reached $63.4 billion, up from $56.6 billion a year earlier, while YouTube advertising revenue rose to $11.2 billion from $10.3 billion.
The expansion comes with a large spending bill. Alphabet spent $51.4 billion on property and equipment during the quarter, compared with $24.0 billion a year earlier. Its reported free cash flow was negative $9.1 billion, meaning those capital purchases exceeded cash generated by operations.
Net income available to common shareholders fell to $26.2 billion from $35.0 billion. The release reported an $8.7 billion loss on equity securities, a reminder that investment swings can affect the company's bottom line even as its main operations grow.
The results show how rising AI demand is expanding the cloud business while requiring heavy investment in computing infrastructure. They do not establish how quickly that spending will produce lasting cash returns.
