Slides
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Q3 2026 Earnings October 28, 2026
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Note About Forward-Looking Statements and Non-GAAP Financial Measures Q3 2026 Earnings This presentation may contain forward-looking statements regarding our business, operations, and financial performance. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Forms 10-K and 10-Q, including the risk factors. We undertake no obligation to update any forward-looking statement, except as required by law. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements. We present both GAAP and non-GAAP financial measures in this presentation. A reconciliation of non-GAAP to GAAP measures is included in this presentation and in the most recent earnings press release, which is distributed and available to the public through our Investor Relations website located at abc.xyz/investor.
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Q3 2026 Earnings Accelerating AI innovation and shipping momentum Jul 2026 Oct 2026 Gemini 3.6 Flash and 3.5 Flash Cyber Gemini 3.7 Flash Gemini 3.8 Flash & 3.8 Flash Cyber Gemini 4 Argon Gemini 4 Carbon Gemini 3.5 Transcribe Omni 1.1 Flash Lyria 3.5 Gemini 3.8 Live & Extended Thinking Nano Banana 2.1 Nano Banana 2.1
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Earnings Highlights Q3 2026 Earnings Google Cloud +103% Q3 Y/Y revenue growth Alphabet +25% Q3 Y/Y revenue growth to ~$128B; now half-trillion annual revenue run rate Across 1P models, including Gemini via direct API usage ~32B Tokens per minute, up 40% Q/Q Gemini App 1B+ Gemini App monthly active users Search & Other Ads +12% Q3 Y/Y revenue growth in Search; Fastest growth in Search queries in 5 years YouTube 150M YouTube Music and Premium subscribers, including trials
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in Millions, except Percentages and EPS; unaudited Revenues Costs and Expenses: Cost of Revenues Research and Development Sales and Marketing General and Administrative Total Costs and Expenses Income from operations Other income (expense), net Income before income taxes Provision for income taxes Net income available to common stockholders Diluted EPS per Common Share $102,346 41,369 15,151 7,205 7,393 71,118 31,228 12,759 43,987 9,008 $34,979 $127,577 51,419 20,640 8,804 6,138 87,001 40,576 (8,221) 32,355 5,887 $26,170 $2.12 25% 24% 36% 22% (17%) 22% 30% NM (26%) (35%) (25%) (26%)$2.87 Q3'25 Q3'26 Y/Y Q3 2026 Earnings Preferred stock dividends 298- N/A **NM = Not Meaningful
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$102,346 Q3’25 Q3’26 Y/Y Growth +16% +25% $100,000 $70,000 $80,000 $90,000 $110,000 $120,000 in Millions, except Percentages; unaudited Q3 2026 Earnings Revenues ($MM) $0 $10,000 $20,000 $30,000 $40,000 $31,228 $40,576 Q3’25 Q3’26 Operating Margin 30.5% 31.8% $50,000 Operating Income ($MM)$127,577$130,000
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in Millions, except Percentages; unaudited $0 Q3’25 Q3’26 Operating Expenses ($MM) Sales & MarketingResearch & Development General & Administrative $0 $15,000 $25,000 $35,000 $45,000 $51,419 Q3’25 Q3’26 Cost of Revenues ($MM) $16,366 $14,876 Total TAC Other Cost of Revenues Y/Y Growth +13% +24% Y/Y Growth +28% +20% $15,000 $25,000 $35,000 $45,000 $7,205 $8,804 $20,640 $15,151 $35,582 $55,000 $55,000 $7,393 $6,138 $26,493 $35,053 Q3 2026 Earnings $29,749 $41,369
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$40,000 Q3’25 Q3’26 Revenues ($MM) Operating Income ($MM) $60,000 $80,000 $100,000 $87,052 Google NetworkGoogle Search & Other YouTube Ads Subscriptions, Platforms & Devices $56,567 $10,261 $7,354 $11,207 $63,350 $7,455 Y/Y Growth +14% +11% Operating Margin 38.5% 40.7% +11% Y/Y +1% Y/Y +9% Y/Y +12% Y/Y $10,000 Q3’25 Q3’26 $20,000 $30,000 $40,000 $33,527 $96,302 in Millions, except Percentages; unaudited $12,870 $14,290 Q3 2026 Earnings $39,157
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Q3’25 Q3’26 Operating Income ($MM) $2,500 $5,000 $7,500 $3,594 $11,121 Operating Margin 23.7% 36.2% $15,000 Q3’25 Q3’26 Revenues ($MM) $15,157 $30,709 Y/Y Growth +34% +103% $10,000 $20,000 $25,000 $30,000 $35,000 $12,500 in Millions, except Percentages; unaudited Q3 2026 Earnings
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Comprehensive full-stack integration from purpose-built silicon to open software and support Q3 2026 Earnings System Components TPU Trays Four proprietary chips on one liquid-cooled board TPU Racks 16 TPU machines with battery backup Purpose-built Hardware Compute (TPU, CPU) Custom TPUs & high-performance host CPUs Storage HBM and other memory Networking Optical Circuit Switches, Datacenter Network & ultra-low latency ICI Open Software and Support Frameworks Native support for JAX, PyTorch & XLA compiler Inference Engine High-throughput vLLM, SGLang & model serving engines TPU Pods 144 TPU racks with 3 optical switch racks Support Post-sales product support and warranty v7 Rack
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$5,000 Capital Expenditures ($MM) $20,000 $25,000 $30,000 Y/Y Growth $35,000 $40,000 in Millions, except Percentages; unaudited Q3 2026 Earnings Q3’25 $23,953 +83% $45,000 Q4’25 +95% $27,851 Q1’26 +107% $35,674 Q2’26 +100% $44,924 $51,355 +114% Q3’26
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Free Cash Flow Purchases of property and equipment Net cash provided by operating activities Trailing Twelve Months Free Cash Flow Q3’26 Y/Y (13%) NM** (73%) 114% Q3'26 39,069 $53,273 (44,924) in Millions, except Percentages; unaudited Q3 2026 Earnings Q3'25 Q4'25 48,414 $73,552 (23,953) $24,461 Q1'26 52,402 $73,266 (27,851) $24,551 Q2'26 45,790 $64,429 (35,674) $10,116 *Non-GAAP measure. See following slide for reconciliation of GAAP to Non-GAAP measures ($5,855) 42,290 (51,355) ($9,065) $19,747 **NM = Not Meaningful
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Free Cash Flow Less: purchases of property and equipment Net cash provided from operating activities Net cash provided from operating activities - TTM Less: purchases of property and equipment - TTM Free Cash Flow - TTM Reconciliation of GAAP to Non-GAAP Financial Information *TTM = Trailing Twelve Months We provide non-GAAP free cash flow for the current quarter and trailing twelve months (“TTM”) because it is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet. ● Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures. ● TTM free cash flow: We define trailing twelve months free cash flow as net cash provided by operating activities less capital expenditures for the most recent twelve consecutive months. in Millions, except Percentages; unaudited in millions; unaudited Q3 2026 Earnings 36,150 (17,197) 18,953 27,747 (22,446) 5,301 39,113 (14,276) 24,837 48,414 (23,953) 24,461 (77,872) 151,424 73,552 52,402 (27,851) 24,551 164,713 73,266 (91,447) 45,790 (35,674) 10,116 174,353 64,429 (109,924) Q2’25Q4’24 Q3’25 Q4’25 Q1’26 Q2’26Q1’25 Q3’26 39,069 (44,924) (5,855) 185,675 53,273 (132,402) 42,290 (51,355) (9,065) 179,551 (159,804) 19,747