Alphabet Hits Half Trillion Dollar Revenue Run Rate as Google Cloud Grows 103 Percent and Model APIs Process 32 Billion Tokens per Minute
Q3 is in the books! We’re now on a half-trillion annual revenue run rate, with Alphabet revenues growing at 25%. - Our AI investments are driving overall Search query growth, including commercial queries - our YoY query growth rate is the highest it’s been in the last five years. - Google Cloud revenue grew 103%, powered by extraordinary demand for our AI infrastructure and AI solutions. Our 1P model APIs now process nearly 32B tokens/min (up 40% QoQ). - Strong momentum in model progress with Argon and Carbon leading the frontier, and Genie 4 our most advanced new world model yet. Thanks to our partners and employees around the world. More to share on the call soon!
Context
Google Cloud doubling its revenue year over year while processing nearly 32 billion tokens per minute across first party model APIs demonstrates that enterprise AI infrastructure and direct Gemini API adoption have become primary growth engines pushing Alphabet past a half trillion dollar annual run rate.
Alphabet reported its third quarter 2026 financial results on October 28, 2026, on the same day Google DeepMind launched its Gemini 4 Carbon frontier model and one day after unveiling the Genie 4 interactive world model.
Deep dive
Alphabet CEO Sundar Pichai announced third quarter 2026 earnings results showing that Alphabet has reached a half trillion dollar annual revenue run rate, with total quarterly revenue growing 25 percent year over year to approximately 128 billion dollars. According to the earnings summary shared by Pichai, AI product integration across Google Search drove the fastest year over year search query growth rate in five years, including commercial queries, lifting Search and other advertising revenue by 12 percent year over year.
Google Cloud delivered the standout expansion of the quarter, growing revenue by 103 percent year over year on enterprise demand for AI infrastructure and enterprise AI services. Pichai reported that Google's first party model APIs, including direct developer usage of Gemini models, now process nearly 32 billion tokens per minute, representing a 40 percent increase quarter over quarter.
On the consumer side, the earnings infographic confirmed that the Gemini App has surpassed 1 billion monthly active users, while YouTube Music and Premium reached 150 million subscribers including trials. Pichai also pointed to rapid frontier model execution across Google DeepMind, noting the back to back releases of Gemini 4 Argon, Gemini 4 Carbon, and the Genie 4 interactive world model within a two week span.
What to expect next
Sustaining triple digit revenue growth in Google Cloud and 40 percent quarterly growth in direct API token volume will test how rapidly Alphabet can bring new TPU and GPU data center capacity online throughout 2027. Investors and enterprise customers will watch closely to see whether wider general availability of Gemini 4 Carbon and the Genie 4 interactive world model further accelerates developer API adoption and commercial search monetization over the coming quarters.