Mountain View:Alphabet, the parent company of Google, announced a significant increase in revenue, reporting a 25% year-on-year jump to $127.6 billion for the July-September quarter of 2026. This growth was largely driven by the robust performance of its cloud computing division.

According to Anadolu Agency – English, Alphabet's revenue in the third quarter rose from $102.3 billion in the same period last year, marking the company's 13th consecutive quarter of double-digit growth. Operating income also saw a substantial increase, climbing 30% to $40.6 billion, with the operating margin reaching 31.8%.

Despite these gains, the company experienced a decline in net income, which fell to $26.5 billion from approximately $35 billion in the previous year. Similarly, net income available to common shareholders decreased to $26.2 billion, with diluted earnings per share dropping to $2.12 from $2.87.

Alphabet reported a net loss of $8.2 billion in other income and expenses, a reversal from a gain of $12.8 billion a year earlier. Losses on equity securities amounted to $8.7 billion during the quarter, impacting net income by $6.7 billion after taxes.

The cloud computing sector was a standout performer, with Google Cloud revenue surging 103% to $30.7 billion, driven by demand for AI infrastructure and solutions. Operating income for the cloud division increased to $11.1 billion from $3.6 billion the previous year.

Google Services revenue also rose, increasing 11% to $96.3 billion, fueled by growth in search, advertising, and subscriptions. Revenue from Google Search and other services climbed 12% to $63.4 billion, while YouTube advertising revenue grew to $11.2 billion from $10.3 billion.

In addition, revenue from Google's subscriptions, platforms, and devices increased to $14.3 billion from $12.9 billion. Alphabet CEO Sundar Pichai highlighted the company's success, noting strong demand for AI products and services, and the company's revenue run rate nearing half a trillion dollars.

Pichai emphasized the positive impact of AI investments on Search query growth and noted that Google Cloud's performance benefitted from AI infrastructure demand. He also announced the Gemini app's milestone of reaching 1 billion users and noted the growth in YouTube Music and Premium subscribers, surpassing 150 million globally.

Meanwhile, the Other Bets segment recorded revenue of $372 million, with an operating loss widening to $2 billion.