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Alphabet vs Microsoft: GOOGL and MSFT compared
Alphabet is the larger company: $127.6B of revenue in its latest quarter (Q3 2026) against $92.3B for Microsoft (Q1 FY27). Alphabet is growing faster (+25% against +19% a year earlier). Microsoft is more profitable, with an operating margin of 49.8% against 31.8%.
Where the money goes: GOOGL and MSFT
Alphabet (GOOGL) · Q3 2026
Alphabet, Q3 2026: revenue $127.6B (+25% year over year), operating margin 31.8%, net earnings $26.5B, operating cash flow $42.3B. The chart follows the revenue to costs, profit and cash.
Microsoft (MSFT) · Q1 FY27
Microsoft, Q1 FY27: revenue $92.3B (+19% year over year), operating margin 49.8%, net earnings $36.6B, operating cash flow $58.0B. The chart follows the revenue to costs, profit and cash.
| Alphabet (GOOGL) | Microsoft (MSFT) | |
|---|---|---|
| Latest quarter | Q3 2026 | Q1 FY27 |
| Revenue | $127.6B | $92.3B |
| Revenue growth, Y/Y | +25% | +19% |
| Gross margin | — | 67.8% |
| Operating margin | 31.8% | 49.8% |
| Net earnings | $26.5B | $36.6B |
| Net margin | 20.7% | 39.7% |
| Operating cash flow | $42.3B | $58.0B |
| Free cash flow | — | $18.6B |
| Market value | $3.52T | $3.95T |
| P/E | 14.9× | 27.7× |
| Analysts’ mean target | $400.37 | $634.14 |
Where the revenue comes from
Alphabet
- Google Services: $96.3B (75%)
- Google Cloud: $30.7B (24%)
- Other Bets: $372M (0%)
Microsoft
- Azure: $33.2B (36%)
- Microsoft 365 Cloud: $27.8B (30%)
- Productivity and Server Licensing: $8.4B (9%)
- Search and Advertising: $6.6B (7%)
Questions
Which is bigger, Alphabet or Microsoft?
Alphabet is the larger company: $127.6B of revenue in its latest quarter (Q3 2026) against $92.3B for Microsoft (Q1 FY27).
Is Alphabet or Microsoft growing faster?
Alphabet is growing faster (+25% against +19% a year earlier).
Which is more profitable, Alphabet or Microsoft?
Microsoft is more profitable, with an operating margin of 49.8% against 31.8%.
More: Alphabet earnings · how Alphabet makes money · Microsoft earnings · how Microsoft makes money
From the companies' latest 10-Q, 10-K or earnings release (10-Q filed Oct 29, 2026; 10-Q filed Oct 28, 2026). Fiscal quarters can end on different dates. Not investment advice.