Alphabet Inc.
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 29, 2026
GOOGL$284.78+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001652044-26-000071
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0001652044-26-000084
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 218 previous paragraphs and 229 current paragraphs.
156 unchanged; 46 reworded; 23 added; 15 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
NM = Not Meaningful
Current report
•During the three months ended September 30, 2026, we issued 12 million shares of Class A stock for net proceeds of $4.3 billion and 24 million shares of Class C stock for net proceeds of $8.1 billion. As of September 30, 2026, $27.6 billion remained available for future issuance under the ATM Program.
Current report
•In October 2026, Waymo entered into a Credit Agreement for a $5.0 billion senior secured term loan that matures in October 2032. The term loan bears interest at a rate equal to Term SOFR plus 5.25% and is secured by certain assets and subsidiaries of Waymo, subject to specified carve-outs. The obligations under the term loan are not guaranteed by Alphabet or any of its other subsidiaries.
Current report
•As of September 30, 2026, we had 204,757 employees.
Current report
Google Network revenues increased $101 million from the three months ended September 30, 2025 to the three months ended September 30, 2026, primarily due to an increase in AdMob revenues. The overall increase was partially offset by a decrease in AdSense revenues.
Current report
General and administrative expenses decreased $1.3 billion from the three months ended September 30, 2025 to the three months ended September 30, 2026, primarily driven by a decrease in expenses related to legal and other matters of $2.1 billion, largely reflecting the effect of a $3.5 billion EC fine accrued in the third quarter of 2025.
Current report
General and administrative expenses increased $749 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026, primarily driven by increases in employee compensation expenses of $773 million and non-income tax expenses of $462 million. The overall increase was partially offset by a decrease in expenses related to legal and other matters of $1.6 billion, largely reflecting the effect of a $3.5 billion EC fine accrued in the third quarter of 2025.
Current report
Google Services operating income increased $5.6 billion from the three months ended September 30, 2025 to the three months ended September 30, 2026. The increase in operating income was primarily driven by an increase in revenues and a decrease in expenses related to legal and other matters, partially offset by an increase in TAC.
Current report
Google Cloud operating income increased $17.9 billion from the nine months ended September 30, 2025 to the nine months ended September 30, 2026. The increase in operating income was primarily driven by an increase in revenues, partially offset by an increase in usage costs for technical infrastructure.
Current report
OI&E, net decreased $21.0 billion from the three months ended September 30, 2025 to the three months ended September 30, 2026, primarily related to net unrealized losses in our marketable equity securities largely from SpaceX, and decreased net unrealized gains on our nonmarketable equity securities largely from a private company.
Current report
OI&E, net increased $100.9 billion from the nine months ended September 30, 2025 to the nine months ended September 30, 2026, primarily related to net unrealized gains on our nonmarketable equity securities largely from a private company, and SpaceX prior to its initial public offering.
Current report
The effective tax rate decreased from the three months ended September 30, 2025 to the three months ended September 30, 2026. The decrease is primarily attributed to lower pre-tax earnings from unrealized losses on equity securities that are deferred tax assets at statutory tax rates, an increase in the foreign-derived deduction eligible income tax deduction, and less non-deductible fines, partially offset by changes in prior period tax positions.
Current report
In October 2026, Waymo entered into a Credit Agreement for a $5.0 billion senior secured term loan that matures in October 2032. The term loan bears interest at a rate equal to Term SOFR plus 5.25% and is secured by certain assets and subsidiaries of Waymo, subject to specified carve-outs. The obligations under the term loan are not guaranteed by Alphabet or any of its other subsidiaries.
Current report
During the three and nine months ended September 30, 2026, we issued 12 million shares of Class A stock for net proceeds of $4.3 billion and 24 million shares of Class C stock for net proceeds of $8.1 billion. As of September 30, 2026, $27.6 billion remained available for future issuance under the ATM Program.
Current report
In the three and nine months ended September 30, 2026, total cash dividends on preferred stock were $234 million, representing $117 million each on the Series A and Series B mandatory convertible preferred stock.
Current report
Future Cash Commitments
Current report
As of September 30, 2026, we have entered into future cash commitments that are not reflected on our balance sheet, subject to counterparties performing on their obligations. These future commitments comprise:
Current report
•$924.4 billion material purchase commitments, of which $802.1 billion relates to multi-year commitments for technical infrastructure and inventory, energy take-or-pay contracts, and content licenses. The significant majority of these commitments will be fulfilled through 2031. For additional information, see Note 10 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q. The remainder primarily consists of open purchase orders. Of the total material purchase commitments of $924.4 billion, $213.4 billion is due within 12 months.
Current report
•$21.9 billion of future funding commitments related to our investments in equity securities. For additional information, see Note 5 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Current report
Contingent Commitments
Current report
As of September 30, 2026, we have entered into contingent commitments consisting of:
Current report
•$75.7 billion of financial support in the form of backstop obligations relating to data centers, including data center lease payments and the associated energy costs for certain agreements. Of these obligations, $48.0 billion is executed with third-party data center providers, which are accounted for as credit derivatives. $27.7 billion represents our obligation to put in place future backstops to support data center and energy supply infrastructure, of which $10.0 billion is with Crux AI, a related party.
Current report
•$22.8 billion of financial guarantees, primarily to support counterparty procurement of long-lead time equipment for our future power purchase and energy agreements.
Removed paragraphs (15)
Previous report
•In June 2026, we issued a combination of Class A stock and Class C stock and mandatory convertible preferred stock for aggregate net proceeds of $49.6 billion, to be used for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute. Additionally, we entered into an equity distribution agreement with certain sales agents to sell up to $40.0 billion of our Class A stock and Class C stock from time to time through an ATM Program. The proceeds of the ATM Program are primarily intended to be used to meet tax obligations associated with employee equity grants. As of June 30, 2026, we have not sold any shares under the ATM Program. For additional information regarding the equity capital raise and related capped call transactions, see Note 11 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous report
•OI&E of $98.0 billion for the three months ended June 30, 2026 included net gains on equity securities of $99.0 billion, primarily related to unrealized gains in our equity securities portfolio from SpaceX and a private company.
Previous report
•In the second quarter of 2026, we accrued $2.1 billion in legal charges related to a Stockholm Patent and Market Court decision regarding a private action brought against Google by PriceRunner (a subsidiary of Klarna). The principal damages of $1.5 billion were accrued in general and administrative expenses in our Google Services segment, and accrued interest and costs of $581 million was recognized in other income (expense), net.
Previous report
•As of June 30, 2026, we had 198,933 employees.
Previous report
General and administrative expenses increased $1.3 billion from the three months ended June 30, 2025 to the three months ended June 30, 2026, primarily driven by increases in employee compensation expenses of $279 million, non-income tax expenses of $258 million, expenses related to legal and other matters of $231 million which included a $1.5 billion charge related to a certain legal matter, and a combination of other factors, none of which were individually significant.
Previous report
General and administrative expenses increased $2.0 billion from the six months ended June 30, 2025 to the six months ended June 30, 2026, primarily driven by increases in employee compensation expenses of $551 million, expenses related to legal and other matters of $439 million which included a $1.5 billion charge related to a certain legal matter, non-income tax expenses of $367 million, and a combination of other factors, none of which were individually significant.
Previous report
OI&E, net increased $95.3 billion and $121.9 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, respectively, primarily related to unrealized gains in our equity securities portfolio from SpaceX and a private company.
Previous report
Additionally, in June 2026, we entered into a short-term lease agreement with a non-cancelable commitment of approximately $5.8 billion, which will commence in the third quarter of 2026.
Previous report
In April 2026, the company's Board of Directors declared a quarterly cash dividend on common stock of $0.22 per share, representing a 5% increase from the previous quarterly dividend of $0.21 per share.
Previous report
In July 2026, the company's Board of Directors declared a quarterly cash dividend of $12.15 per share on each of our Series A and Series B mandatory convertible preferred stock (equivalent to approximately $0.60 per each of our Series A and Series B Depositary Shares) and a quarterly cash dividend of $0.22 per share on our Class A, Class B, and Class C stock. The mandatory convertible preferred stock dividend is payable on August 15, 2026 to stockholders of record for each of the company's Series A and Series B shares as of August 1, 2026, and the common stock dividend is payable on September 14, 2026 to stockholders of record for each of the company's Class A, Class B, and Class C shares as of September 7, 2026.
Previous report
Repurchases may be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The repurchase programs do not have an expiration date.
Previous report
As of June 30, 2026, we had material purchase commitments and other contractual obligations totaling $811.0 billion, of which$200.7 billion was short-term. These purchase commitments primarily relateto costs for technical infrastructure and inventory through long-term supply agreements and open purchase orders. Additional contractual obligations include commitments for content licenses and energy take-or-pay contracts. For additional information related to our long-term supply agreements, energy take-or-pay contracts, and content licenses, see Note 10 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous report
As of June 30, 2026, we provided backstops in the form of financial guarantees and credit derivatives with maximum potential amount of future payments of $7.6 billion and $43.8 billion, respectively. Upon a default under these backstops, we retain the right to assume the underlying leases for internal use or to sublease to third parties. Under specific conditions or following a predetermined period, we may elect to extinguish the backstop obligation by making a termination payment. For additional information, see Note 3 and Note 10 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous report
We have also entered into an agreement to provide an estimated $24.1 billion of future backstops to support the build-out of data center and energy supply infrastructure, subject to finalization of terms with data center providers. For additional information, see Note 3 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous report
Additionally, as of June 30, 2026, we have $20.0 billion of future capital funding commitments with a private company contingent upon the achievement of specified operational and financial milestones through 2030, which is accounted for as an equity derivative. For additional information, see Note 3 and Note 5 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Reworded paragraphs (46)
Previous wording
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide enterprise customers of all sizes with infrastructure, platform services, and applications; and sales of products and services, such as fees received for subscription-based products, apps and in-app purchases, devices, and TPU systems. For additional information on how we recognize revenue, see Note 1 of the Notes to Consolidated Financial Statements included in Part II, Item 8 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Current wording
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide enterprise customers of all sizes with infrastructure, platform services, and applications; and sales of products and services, such as fees received for subscription-based products, apps and in-app purchases, consumer devices, and TPU systems. For additional information on how we recognize revenue, see Note 1 of the Notes to Consolidated Financial Statements included in Part II, Item 8 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Previous wording
•devices, which primarily include sales of the Pixel family of devices; and
Current wording
•consumer devices, which primarily include sales of the Pixel family of devices; and
Previous wording
◦inventory and other costs related to the devices and TPU system hardware we sell; and
Current wording
◦inventory and related costs associated with the consumer devices and TPU systems hardware we sell; and
Previous wording
•Revenues were $119.8 billion, an increase of 24% year over year, primarily driven by an increase in Google Services revenues of $12.0 billion, or 15%, and an increase in Google Cloud revenues of $11.1 billion, or 82%.
Current wording
•Revenues were $127.6 billion, an increase of 25% year over year, primarily driven by an increase in Google Cloud revenues of $15.6 billion, or 103%, and an increase in Google Services revenues of $9.3 billion, or 11%.
Previous wording
•Cost of revenues was $45.9 billion, an increase of 18% year over year, primarily driven by increases in depreciation expense, TAC, inventory and other costs, content acquisition costs, and other technical infrastructure operations costs.
Current wording
•Cost of revenues was $51.4 billion, an increase of 24% year over year, primarily driven by increases in inventory and related costs, primarily associated with the sale of TPU systems, depreciation expense, TAC, and content acquisition costs, largely for YouTube.
Previous wording
•Operating expenses were $33.1 billion, an increase of 27% year over year, primarily driven by increases in employee compensation expenses, advertising and promotional activities, and depreciation expense.
Current wording
•Operating expenses were $35.6 billion, an increase of 20% year over year, primarily driven by increases in employee compensation expenses and depreciation expense. These increases were partially offset by a decrease in expenses related to legal and other matters.
Previous wording
•In the second quarter of 2026, we issued senior unsecured notes for net proceeds of $20.3 billion, to be used for general corporate purposes.
Current wording
•In the third quarter of 2026, we issued senior unsecured notes for net proceeds of $28.7 billion, to be used for general corporate purposes.
Previous wording
•Operating cash flow was $39.1 billion for the three months ended June 30, 2026.
Current wording
•Operating cash flow was $42.3 billion for the three months ended September 30, 2026.
Previous wording
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $44.9 billion for the three months ended June 30, 2026.
Current wording
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $51.4 billion for the three months ended September 30, 2026.
Previous wording
Google Search & other revenues increased $9.1 billion and $18.8 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Current wording
Google Search & other revenues increased $6.8 billion and $25.6 billion from the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2026. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Previous wording
YouTube ads revenues increased $1.3 billion and $2.2 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The growth was driven by our direct response advertising products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.
Current wording
YouTube ads revenues increased $946 million and $3.2 billion from the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2026. The growth was driven by our brand advertising products followed by our direct response advertising products, both of which benefited from increased spending by our advertisers.
Previous wording
Google Network revenues decreased $51 million and $336 million from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, primarily due to a decrease in AdSense revenues, partially offset by an increase in AdMob revenues.
Current wording
Google Network revenues decreased $235 million from the nine months ended September 30, 2025 to the nine months ended September 30, 2026, primarily due to a decrease in AdSense revenues, partially offset by an increase in AdMob revenues.
Previous wording
The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026:
Current wording
The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2026:
Previous wording
Google subscriptions, platforms, and devices revenues increased $1.7 billion and $3.7 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The growth was primarily driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid subscriptions across both YouTube services and Google One.
Current wording
Google subscriptions, platforms, and devices revenues increased $5.1 billion from the nine months ended September 30, 2025 to the nine months ended September 30, 2026. The growth was primarily driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid subscriptions across both YouTube services and Google One.
Previous wording
Google Cloud revenues increased $11.1 billion and $18.9 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026 primarily driven by growth in Google Cloud Platform largely from infrastructure and platform services. In addition, in the second quarter of 2026, we began recognizing revenue from the sale of TPU systems.
Current wording
Google Cloud revenues increased $15.6 billion from the three months ended September 30, 2025 to the three months ended September 30, 2026, primarily driven by growth in Google Cloud Platform, largely from infrastructure and platform services, and TPU system sales.
Previous wording
Cost of revenues increased $6.9 billion from the three months ended June 30, 2025 to the three months ended June 30, 2026 due to an increase in other cost of revenues and TAC of $5.4 billion and $1.5 billion, respectively. Cost of revenues increased $11.8 billion from the six months ended June 30, 2025 to the six months ended June 30, 2026 due to an increase in other cost of revenues and TAC of $8.9 billion and $3.0 billion, respectively.
Current wording
Cost of revenues increased $10.1 billion from the three months ended September 30, 2025 to the three months ended September 30, 2026 due to an increase in other cost of revenues and TAC of $8.6 billion and $1.5 billion, respectively. Cost of revenues increased $21.9 billion from the nine months ended September 30, 2025 to the nine months ended September 30, 2026 due to an increase in other cost of revenues and TAC of $17.4 billion and $4.4 billion, respectively.
Previous wording
The increase in TAC from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 20.6% to 19.8% from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The TAC rate on Google Search & other revenues was substantially consistent from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The TAC rates on Google Network revenues reflected a slight increase from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026 due to a combination of factors, none of which were individually significant.
Current wording
The increase in TAC from the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2026 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 20.1% to 20.0% from the three months ended September 30, 2025 to the three months ended September 30, 2026 and decreased from 20.4% to 19.8% from the nine months ended September 30, 2025 to the nine months ended September 30, 2026, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties, partially offset by an increase in the Google Network TAC rate. The TAC rate on Google Search & other revenues was substantially consistent from the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2026. The TAC rates on Google Network revenues reflected an increase from the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2026 due to a combination of factors, none of which were individually significant.
Previous wording
The increase in other cost of revenues from the three months ended June 30, 2025 to the three months ended June 30, 2026 was primarily due to increases in depreciation expense, inventory and other costs, content acquisition costs, largely for YouTube, and other technical infrastructure operations costs.
Current wording
The increase in other cost of revenues from the three months ended September 30, 2025 to the three months ended September 30, 2026 was primarily due to increases in inventory and related costs, primarily associated with the sale of TPU systems, depreciation expense, content acquisition costs, largely for YouTube, and other technical infrastructure operations costs.
Previous wording
The increase in other cost of revenues from the six months ended June 30, 2025 to the six months ended June 30, 2026 was primarily due to increases in depreciation expense, content acquisition costs, largely for YouTube, inventory and other costs, employee compensation expenses, and other technical infrastructure operation costs.
Current wording
The increase in other cost of revenues from the nine months ended September 30, 2025 to the nine months ended September 30, 2026 was primarily due to increases in depreciation expense, inventory and related costs, primarily associated with the sale of TPU systems, content acquisition costs, largely for YouTube, and employee compensation expenses.
Previous wording
Research and development expenses increased $4.4 billion and $7.9 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, primarily driven by increases in employee compensation expenses of $2.9 billion and $5.3 billion, as well as depreciation expense of $592 million and $1.1 billion, respectively.
Current wording
Research and development expenses increased $5.5 billion and $13.4 billion from the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2026, primarily driven by increases in employee compensation expenses of $3.5 billion and $8.8 billion, as well as depreciation expense of $802 million and $1.9 billion, respectively.
Previous wording
Sales and marketing expenses increased $1.3 billion and $2.7 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, primarily driven by increases in advertising and promotional activities of $764 million and $1.4 billion, as well as employee compensation expenses of $402 million and $806 million, respectively.
Current wording
Sales and marketing expenses increased $1.6 billion and $4.3 billion from the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2026, primarily driven by increases in advertising and promotional activities of $722 million and $2.1 billion, as well as employee compensation expenses of $715 million and $1.5 billion, respectively.
Previous wording
Google Services operating income increased $6.5 billion and $14.4 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by an increase in TAC.
Current wording
Google Services operating income increased $20.0 billion from the nine months ended September 30, 2025 to the nine months ended September 30, 2026. The increase in operating income was primarily driven by an increase in revenues, partially offset by an increase in TAC.
Previous wording
Google Cloud operating income increased $6.0 billion and $10.4 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure and employee compensation expenses.
Current wording
Google Cloud operating income increased $7.5 billion from the three months ended September 30, 2025 to the three months ended September 30, 2026. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in inventory and related costs associated with the sale of TPU systems and usage costs for technical infrastructure.
Previous wording
Other Bets operating loss increased $553 million from the three months ended June 30, 2025 to the three months ended June 30, 2026. The increase in operating loss was primarily driven by an increase in employee compensation expenses and a combination of other factors, none of which were individually significant.
Current wording
Other Bets operating loss increased $621 million from the three months ended September 30, 2025 to the three months ended September 30, 2026. The increase in operating loss was primarily driven by an increase in employee compensation expenses and a combination of other factors, none of which were individually significant.
Previous wording
Other Bets operating loss increased $1.4 billion from the six months ended June 30, 2025 to the six months ended June 30, 2026. The increase in operating loss was primarily driven by increases in employee compensation expenses, third-party services fees, and a combination of other factors, none of which were individually significant.
Current wording
Other Bets operating loss increased $2.0 billion from the nine months ended September 30, 2025 to the nine months ended September 30, 2026. The increase in operating loss was primarily driven by increases in employee compensation expenses and third-party services fees.
Previous wording
The effective tax rate increased from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The increase is primarily attributed to higher pre-tax earnings from unrealized gains on equity securities that are deferred tax liabilities at the statutory tax rate.
Current wording
The effective tax rate increased from the nine months ended September 30, 2025 to the nine months ended September 30, 2026. The increase is primarily attributed to higher pre-tax earnings from unrealized gains on equity securities that are deferred tax liabilities at the statutory tax rate, and an increase in acquisition-related tax integration costs, partially offset by an increase in SBC-related tax benefits and foreign-derived deduction eligible income tax deduction.
Previous wording
The Organization for Economic Cooperation and Development (OECD) published model rules for the implementation of a minimum global effective tax rate of 15%. Many countries have implemented or are in the process of implementing the rules. In January 2026, the OECD introduced new guidance including a "Side-by-Side Safe Harbor" which, if elected, exempts US domestic operations from being taxed by global minimum tax rules. However, it does not exempt foreign subsidiaries from local minimum tax requirements. These rules did not have a material effect on our income tax provision for the six months ended June 30, 2026. As more countries enact these global minimum tax rules, our effective tax rate and cash tax payments could be affected.
Current wording
The Organization for Economic Cooperation and Development (OECD) published model rules for the implementation of a minimum global effective tax rate of 15%. Many countries have implemented or are in the process of implementing the rules. In January 2026, the OECD introduced new guidance including a "Side-by-Side Safe Harbor" which, if elected, exempts US domestic operations from being taxed by global minimum tax rules. However, it does not exempt foreign subsidiaries from local minimum tax requirements. These rules did not have a material effect on our income tax provision for the nine months ended September 30, 2026. As more countries enact these global minimum tax rules, our effective tax rate and cash tax payments could be affected.
Previous wording
As of June 30, 2026, we had $242.5 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.
Current wording
As of September 30, 2026, we had $265.1 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.
Previous wording
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other properties, YouTube properties, and Google Network properties. In Google Services, we also generate cash through consumer subscriptions, the sale of apps and in-app purchases, and devices. In Google Cloud, we generate cash through consumption-based fees and subscriptions for infrastructure, platform, applications, and other cloud services, as well as from product sales.
Current wording
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other properties, YouTube properties, and Google Network properties. In Google Services, we also generate cash through consumer subscriptions, the sale of apps and in-app purchases, and consumer devices. In Google Cloud, we generate cash through consumption-based fees and subscriptions for infrastructure, platform, applications, and other cloud services, as well as from product sales.
Previous wording
Net cash provided by operating activities increased from the six months ended June 30, 2025 to the six months ended June 30, 2026 due to an increase in cash received from customers, partially offset by an increase in cash payments for cost of revenues and operating expenses.
Current wording
Net cash provided by operating activities increased from the nine months ended September 30, 2025 to the nine months ended September 30, 2026 due to an increase in cash received from customers, partially offset by an increase in cash payments for cost of revenues and operating expenses.
Previous wording
Net cash used in investing activities increased from the six months ended June 30, 2025 to the six months ended June 30, 2026 primarily due to an increase in purchases of property and equipment, driven by investments in technical infrastructure, an increase in purchases of marketable securities, and an increase in payments for acquisitions.
Current wording
Net cash used in investing activities increased from the nine months ended September 30, 2025 to the nine months ended September 30, 2026 primarily due to an increase in purchases of property and equipment, driven by investments in technical infrastructure, an increase in purchases of marketable securities, and an increase in payments for acquisitions.
Previous wording
Net cash provided by financing activities for the six months ended June 30, 2026 compared to net cash used in financing activities for the six months ended June 30, 2025 was primarily due to the issuance of common stock, a decrease in repurchases of stock, an increase in the issuance of debt, and the issuance of mandatory convertible preferred stock.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2026 compared to net cash used in financing activities for the nine months ended September 30, 2025 was primarily due to an increase in the issuance of debt, the issuance of common stock, and a decrease in repurchases of stock.
Previous wording
During the six months ended June 30, 2025 and 2026, we spent $39.6 billion and $80.6 billion on capital expenditures, respectively. In 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure, including servers and network equipment and data centers. Depreciation of our property and equipment commences when such assets are ready for their intended use. For the six months ended June 30, 2025 and 2026, our depreciation on property and equipment was $9.5 billion and $13.6 billion, respectively.
Current wording
During the nine months ended September 30, 2025 and 2026, we spent $63.6 billion and $132.0 billion on capital expenditures, respectively. In 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure, including servers and network equipment and data centers. Depreciation of our property and equipment commences when such assets are ready for their intended use. For the nine months ended September 30, 2025 and 2026, our depreciation on property and equipment was $15.1 billion and $22.0 billion, respectively.
Previous wording
As of June 30, 2026, the amount of total undiscounted future lease payments under operating and finance leases was $21.3 billion and $2.9 billion, respectively.
Current wording
As of September 30, 2026, the amount of total undiscounted future lease payments under operating and finance leases was $24.4 billion and $4.3 billion, respectively.
Previous wording
As of June 30, 2026, we have entered into leases, primarily related to data centers, that have not yet commenced with future lease payments of $85.2 billion. These leases will commence between 2026 and 2031 with non-cancelable lease terms between one and 26 years.
Current wording
As of September 30, 2026, we have entered into leases, primarily related to data centers and energy infrastructure, that have not yet commenced with future lease payments of $130.5 billion. These leases will commence between 2026 and 2031 with non-cancelable lease terms between one and 26 years.
Previous wording
As of June 30, 2026, we had long-term debt outstanding with a total carrying value of$98.2 billion.
Current wording
As of September 30, 2026, we had long-term debt outstanding with a total carrying value of $125.1 billion.
Previous wording
During the six months ended June 30, 2026, we issued $20.0 billion of U.S. dollar-denominated fixed-rate senior unsecured notes and $31.8 billion of foreign currency-denominated fixed-rate senior unsecured notes for general corporate purposes, across Sterling, Swiss Franc, Euro, Canadian dollars, and Japanese yen.
Current wording
During the nine months ended September 30, 2026, we issued $45.0 billion of US dollar-denominated senior unsecured notes and $35.8 billion of foreign currency-denominated senior unsecured notes for general corporate purposes, across Sterling, Swiss Franc, Euro, Canadian dollar, Japanese yen, and Australian dollar.
Previous wording
As of June 30, 2026, we had $11.7 billion of credit facilities, expiring at various dates through April 2030, of which $1.3 billion was outstanding. The outstanding debt under the credit facilities bears an interest rate of SOFR plus 1.5% to 2.25% that is paid quarterly. We also have a commercial paper program of up to $25.0 billion, which is used for general corporate purposes. As of June 30, 2026, we hadno commercial paper outstanding.
Current wording
As of September 30, 2026, we had $10.0 billion of revolving credit facilities, of which $4.0 billion expires in April 2027 and $6.0 billion expires in April 2030. No amounts were outstanding under the credit facilities as of September 30, 2026. We also have a commercial paper program of up to $25.0 billion, which is used for general corporate purposes. As of September 30, 2026, we had no comme rcial paper outstanding.
Previous wording
On June 1, 2026, the company entered into an equity distribution agreement with certain sales agents party thereto, pursuant to which we may sell both our Class A and Class C stock having aggregate sales proceeds of up to $40.0 billion from time to time through the ATM Program. The proceeds from offerings under the ATM Program, if any, are primarily intended to be used to meet tax obligations associated with employee equity grants. As of June 30, 2026, we have not sold any shares under the ATM Program, and the full $40.0 billion remains available for future issuance.
Current wording
On June 1, 2026, the company entered into an equity distribution agreement with certain sales agents party thereto, pursuant to which we may sell both our Class A and Class C stock having aggregate sales proceeds of up to $40.0 billion from time to time through the ATM Program. The proceeds from offerings under the ATM Program are primarily intended to be used to meet tax obligations associated with employee equity grants.
Previous wording
In the three and six months ended June 30, 2026, total cash dividends on common stock were $1.3 billion and $2.5 billion for Class A, $184 million and $359 million for Class B, and $1.2 billion and $2.4 billion for Class C shares, respectively.
Current wording
In the three and nine months ended September 30, 2026, total cash dividends on common stock were $2.7 billion and $7.9 billion, representing $1.3 billion and $3.8 billion for Class A, $182 million and $541 million for Class B, and $1.2 billion and $3.6 billion for Class C shares, respectively.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Google subscriptions, platforms, and devices revenues increased $1.4 billion from the three months ended September 30, 2025 to the three months ended September 30, 2026. The growth was primarily driven by increases in subscriptions and devices revenues. The increase in subscriptions revenues was primarily due to the contribution from growth in paid subscriptions across both YouTube services and Google One. The increase in devices revenues was primarily driven by increased sales of Pixel devices.
Current report — wording carried from elsewhere
Google Cloud revenues increased $34.5 billion from the nine months ended September 30, 2025 to the nine months ended September 30, 2026, primarily driven by growth in Google Cloud Platform largely from infrastructure and platform services.
Current report — wording carried from elsewhere
•$130.5 billion future payments for leases not yet commenced, primarily related to data centers and energy infrastructure. These leases will commence between 2026 and 2031 with non-cancelable lease terms between one and 26 years. For additional information, see Note 4 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Current report — wording carried from elsewhere
For additional information, see Note 3 and Note 10 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
For additional information, see Note 8 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.