Cloud more than doubles
Alphabet, the parent company of Google, on Oct. 28 (Oct. 29 Japan time) reported results for the July-September quarter of 2026. Revenue rose 25% from a year earlier to $127.6 billion. Its cloud business, Google Cloud, rose 103% to $30.7 billion, more than doubling in a year.
Chief Executive Officer Sundar Pichai posted on X that the company's annual revenue run rate had reached $500 billion. He said growth in search queries was the largest in the past five years and that AI had boosted search usage.
| Metric | July-September | Change from a year earlier |
|---|---|---|
| Revenue | $127.6 billion | Up 25% |
| Google Cloud revenue | $30.7 billion | Up 103% |
| Capital spending | $51.4 billion | — |
AI processing quadruples in a year
The volume processed by the APIs for its in-house AI models reached about 32 billion tokens per minute, four times the level of a year earlier. Users of its AI app "Gemini" reached 1 billion.
Capital spending to exceed $300 billion in 2027
Capital spending in the July-September quarter was $51.4 billion. The company raised its full-year 2026 forecast to $195 billion to $205 billion and said spending would exceed $300 billion in 2027.
