Alphabet doubles its AI-driven cloud business and Gemini reaches one billion users, but markets punish the spending
Redacción IvokaNov 1, 3:00 PM 3 min
Google Cloud grew 103% to $30.7 billion and the Gemini app now has over one billion users. Even so, the stock fell about 10%.
Alphabet reported its third-quarter 2026 results with very strong AI numbers, but with earnings below expectations.
What Google said
- The Gemini app now has one billion users, and the company describes it as the fastest-growing product in its history.
- Its model APIs process nearly 32 billion tokens per minute, 40% more than last quarter and more than four times what they handled a year ago.
- Alongside Gemini 4 Argon, Google announced the Carbon model that day, part of the same Gemini 4 series.
- Revenue grew 25% to about $128 billion.
What CNBC reported
- Google Cloud more than doubled to $30.7 billion, above the $28.7 billion analysts expected.
- Still, revenue and earnings fell short: $127.58 billion versus $128.22 billion expected, and earnings per share of $2.67 versus $3.02 expected.
- Alphabet held its full-year capital spending forecast at $195 to $205 billion, and the stock fell 10%.
What it means for you
These are signs that AI usage keeps growing very fast and that companies are spending heavily to serve it. For anyone using Gemini in their business, it is an app that is increasingly central to Google's ecosystem.
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