Alphabet Inc.

Welcome, everyone. Thank you for standing by for the Alphabet Third Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone. I would now like to hand the conference over to your speaker today, Jim Friedland, Head of Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to Alphabet's third quarter 2026 earnings conference call. With us today are Sundar Pichai, Philipp Schindler, Thomas Kurian, and Anat Ashkenazi. Now I'll quickly cover the safe harbor. Some of the statements that we make today regarding our business, operations, and financial performance may be considered forward-looking. 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. Thanks, Jim, and hello, everyone.

Q3 was a strong quarter for Alphabet. Our deep full stack approach is driving momentum across the business with many opportunities ahead. Let me give you a quick snapshot of the quarter. Alphabet revenues grew 25% year over year. We are now at a half a trillion dollar annual run rate. That's remarkable growth. Search has strong momentum. Our AI investments are driving increased usage and overall query growth, including commercial queries. In fact, our year-over-year query growth rate is the highest it's been in the last five years. Google Cloud revenues grew 103%. Our AI infrastructure and solutions are the major drivers for cloud growth and our customers see us as the leading provider here, so there's huge demand. We are working hard to bring more capacity online to meet this long-term demand. At the same time, we are seeing strong demand for our TPU systems across a wide range of customers and we expect that to continue as we scale. I'm excited to welcome Thomas to the call, and he'll share more about Cloud's momentum. On our AI models, customers are using our models more than ever. Our first-party model APIs are now processing nearly 32 billion tokens per minute, 40% more than last quarter, and more than four times what we processed a year ago. And with Gemini 4 Argon and now Carbon, which we announced today, we are excited to be leading at the frontier. The Gemini app is now at 1 billion users and is the fastest-growing product in Google's history. Lastly, we have surpassed 150 million YouTube music and premium subscribers globally, including trials. Today, I'll talk more about our AI progress, our global consumer platforms led by Search and YouTube, then our long-term bets. Starting with AI, highlighted by our Gemini 4 series of frontier models, We are seeing strong demand and usage for Argon, which we launched two weeks ago. In fact, on our developer platforms, usage in the first week ramped up three and a half times faster than Gemini 3, even with capacity constraints. Argon is proving to do really well in areas like finance, legal, cybersecurity, and science. Developers and cloud customers are already using it for things like untangling legacy code bases, accelerating scientific research, robotics, discovering product improvements, and domain-specific tasks requiring in-depth reasoning. And at Google, just in the last few weeks, teams across Chrome, Ads, and Search have used Oregon to write and optimize code much faster, shipping 35% more code with 30% fewer errors. Argonne is just the start of the Gemini 4 series. Today we announced Carbon. It's our strongest frontier model with state-of-the-art cybersecurity and long-horizon capabilities. It ranks number one on the recently updated Artificial Analysis Intelligence Index at 59. Carbon outperforms Argonne across almost every domain, like full-stack web development, multimodal understanding, complex knowledge work, and scientific reasoning. We are rolling carbon out first to a subset of trusted cyber defenders before we expand access and it's being tested by the US government. Beyond our Gemini 4 series, yesterday we announced Genie 4, our most advanced world model yet that simulates safe, realistic, interactive worlds with native audio in real time. This is an important building block for training robots and agents. This rapid progress underscores our incredible model momentum. We are at the point where AI is helping us increase our training and launch velocity. I would expect the next 12 months to see continued acceleration because of RSI. We have more models coming soon, including more efficient versions to help developers optimize for speed and cost and to deploy across our billions of users. Let's turn to search, which is bringing the benefits of AI to more people than any other product in the world. Just like our shift to mobile over a decade ago, we are focused on building the best search user experience, followed by monetization. We are building one seamless experience across AI overviews, AI mode, and traditional search. And people are using our AI features more, searching in entirely new ways. Their queries are longer, personalized, and multimodal. Queries in AI mode are on average three times longer than traditional searches. And one in five AI mode searches globally use voice, images, or documents. We have now crossed over 50 billion visual searches per month. One area I'm excited about is helping people get things done, be it booking reservations, filling in forms, scheduling appointments, or making purchases. As AI becomes more personal and starts taking action for people and businesses, trust and security matter more than ever. People already put their trust in Google to get things done in their daily lives and our leadership here remains an important differentiator. We focus first on getting these agentic experiences right with the Gemini agent for enterprise because the bar for security, safety, and governance is extremely high. As a next step, we are bringing these features to search and also, of course, to our billion users on the Gemini app. People are already using the Gemini app to do more than ask questions. They're using it to do things, including complex multi-step agentic queries. Our Gemini 4 series has been a really big step forward here and has already been handling these complex tasks really well. Agents will operate as a unifying layer across our products, so you will see us extend these agentic experiences beyond search in the Gemini app to Chrome, Android, and our workspace products as well. on to YouTube, which continues to lead in the living room as the number one streaming platform in the US in terms of watch time. It's also seeing good subscriber growth, as I mentioned. At Made on YouTube last month, we announced more than 30 products and features for creators and viewers. One great example is custom feeds where you can simply pick a topic you love and get a tailored video home feed based on that topic. Philip will say more on YouTube. Onto our long-term bets. Waymo is on a great trajectory. We have now driven more than 300 million fully autonomous miles. Waymo now operates in 15 major US cities and just recently opened up service to the public in San Antonio, San Diego, and Tampa with planned expansions into Canada, Germany, Singapore, and Spain. We're also seeing strong progress across our other long-term initiatives. Isomorphic is using Orgon to support drug design research. We demonstrated magic state cultivation for the first time in quantum computing and launched our TPUs into space with Project Suncatcher. So it's been a busy quarter and there's much more to come. I want to thank our employees for their work this quarter and over to you, Philip.