CasiusCap

ALPHABET $GOOGL Q3’26 EARNINGS HIGHLIGHTS 🔹 EPS: $2.12 🔹 Revenue: $127.6B (Est. $128.22B) 🔴; +25% YoY 🔹 Google Cloud Revenue: $30.7B (Est. $29.15B) 🟢 🔹 Search & Other: $63.4B (Est. $64.99B) 🔴 🔹 YouTube Ads: $11.2B (Est. $11.4B) 🔴 🔹 CapEx: $51.4B (Est. $55.2B) 🟢 🔹 CapEx to Revenue: ~40.3% Key Updates: 🔹 Equity Securities: $8.7B net unrealized loss; EPS impact $0.55 Google Services: 🔹 Google Services Revenue: $96.3B (Est. $98.42B) 🔴 🔹 Google Services Oper Income: $39.2B (Est. $40.8B) 🔴 🔹 Google Services Operating Margin: ~40.7% 🔹 Google Advertising: $82.0B (Est. $83.6B) 🔴 🔹 Google Network: $7.5B (Est. $7.2B) 🟢 🔹 Subscriptions, Platforms & Devices: $14.3B (Est. $14.85B) 🔴 Google Cloud: 🔹 Google Cloud Oper Income: $11.1B (Est. $9.75B) 🟢 🔹 Google Cloud Operating Margin: ~36.2% Other Bets: 🔹 Revenue: $372M 🔹 Operating Loss: -$2.0B Alphabet-Level Activities: 🔹 Oper Loss: -$7.7B; shared AI research and development expenses Other Metrics: 🔹 Total Oper Income: $40.6B (Est. $43.23B) 🔴 🔹 Total TAC: $16.4B 🔹 Revenue ex-TAC: ~$111.2B 🔹 Employees: 204,757 🔹 Paid Subscriptions: 150M+ 🔹 First-Party Model APIs: nearly 32B tokens per minute Geographic Revenue: 🔹 U.S.: $67.7B; +39% YoY 🔹 EMEA: $32.7B; +9% YoY 🔹 APAC: $19.9B; +12% YoY 🔹 Other Americas: $7.1B; +17% YoY Financials: 🔹 Operating Margin: 31.8% 🔹 Net Income: $26.5B 🔹 Other Income, Net: -$8.2B 🔹 Gain on Equity Securities, Net: -$8.7B 🔹 Operating Cash Flow: $42.3B (Est. $52.72B) 🔴 🔹 Free Cash Flow: -$9.1B (Est. -$2.7B) 🔴 🔹 TTM Free Cash Flow: $19.7B 🔹 Cash & Marketable Securities: $265.1B 🔹 Long-Term Debt: $125.1B Capital Return: 🔹 Dividend: $0.22/share 🔹 Stock Repurchases: $0 CEO Sundar Pichai Commentary: 🔸 “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.” 🔸 “Overall, our first-party model APIs are now processing nearly 32 billion tokens per minute, more than four times what we processed a year ago.” 🔸 “On top of that, the Gemini app has reached one billion users—making it the fastest-growing product in Google’s history—and we surpassed 150 million YouTube Music and Premium subscribers globally, including trials.”