Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Alphabet Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The profitability metrics across the analyzed period exhibit a distinct V-shaped trend, characterized by an initial contraction across all ratios followed by a sustained recovery and significant expansion in the later quarters.
- Margin Performance
- Gross profit margin experienced a moderate decline from 56.93% in March 2022 to a trough of 55.30% in March 2023. Following this low, a consistent upward trajectory was established, resulting in a peak of 60.90% by June 2026 and ending at 60.86% in September 2026.
- Operating profit margin showed a more pronounced contraction, falling from 30.47% in March 2022 to 25.35% in March 2023. A steady recovery followed, with margins exceeding previous levels by September 2024 and reaching a period high of 33.32% by September 2026.
- Net profit margin demonstrated the most extreme volatility. After decreasing from 27.57% to a low of 20.58% in March 2023, the margin climbed steadily through 2024 and 2025. A sharp increase occurred in the first half of 2026, peaking at 54.77% in June 2026 before settling at 50.03% in September 2026.
- Return Metrics
- Return on Equity (ROE) mirrored the trajectory of the net profit margin, declining from 29.35% in March 2022 to a low of 22.46% in March 2023. ROE then entered a growth phase, peaking at 38.13% in June 2026 and ending the period at 34.79%.
- Return on Assets (ROA) followed a similar pattern, dropping from 20.87% in March 2022 to 15.86% in March 2023. Efficiency improved throughout the subsequent years, reaching a maximum of 26.49% in June 2026 and concluding at 23.49% in September 2026.
The synchronization of these movements suggests that the company faced significant headwinds peaking in early 2023, which impacted all levels of profitability. The subsequent recovery indicates a successful optimization of cost structures and an improvement in asset utilization, culminating in a substantial surge in net profitability and equity returns during the first half of 2026.
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Gross Profit Margin
Alphabet Inc., gross profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Gross profit | 76,158) | 73,853) | 68,625) | 68,062) | 60,977) | 57,389) | 53,873) | 55,856) | 51,794) | 49,235) | 46,827) | 48,735) | 43,464) | 42,688) | 39,175) | 40,706) | 37,934) | 39,581) | 38,412) | ||||||
| Revenues | 127,577) | 119,796) | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Gross profit margin1 | 60.86% | 60.90% | 60.37% | 59.65% | 59.17% | 58.94% | 58.59% | 58.20% | 57.84% | 57.35% | 57.12% | 56.63% | 55.88% | 55.44% | 55.30% | 55.38% | 56.10% | 56.74% | 56.93% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 69.84% | 69.39% | 70.13% | 71.75% | 71.88% | 70.82% | 70.36% | 70.08% | 69.73% | 70.53% | 70.00% | 69.76% | 69.96% | 69.65% | 69.49% | 68.53% | 68.41% | 67.34% | 66.64% | ||||||
| Meta Platforms Inc. | 81.03% | 81.75% | 81.94% | 82.00% | 82.00% | 81.95% | 81.75% | 81.67% | 81.43% | 81.40% | 81.44% | 80.76% | 79.05% | 78.34% | 78.40% | 78.35% | 80.31% | 80.47% | 80.34% | ||||||
| Netflix Inc. | 50.68% | 49.12% | 49.03% | 48.49% | 48.09% | 48.49% | 46.92% | 46.06% | 45.25% | 43.84% | 43.06% | 41.54% | 39.49% | 38.77% | 38.30% | 39.37% | 39.62% | 40.63% | 41.62% | ||||||
| Walt Disney Co. | 37.60% | 37.16% | 37.28% | 37.76% | 37.61% | 37.10% | 36.74% | 35.75% | 35.36% | 35.03% | 34.33% | 33.41% | 32.77% | 33.04% | 33.40% | 34.24% | 34.43% | 33.79% | 34.34% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Gross profit margin = 100
× (Gross profitQ3 2026
+ Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025)
÷ (RevenuesQ3 2026
+ RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025)
= 100 × (76,158 + 73,853 + 68,625 + 68,062)
÷ (127,577 + 119,796 + 109,896 + 113,828)
= 60.86%
2 Click competitor name to see calculations.
The analysis of the gross profit margin indicates a distinct V-shaped recovery followed by a period of sustained expansion. After an initial decline during 2022, the margin experienced a consistent upward trajectory throughout 2023, 2024, 2025, and into 2026, reflecting an improvement in the relationship between revenue generation and the direct costs of sales.
- Initial Margin Contraction (March 2022 – March 2023)
- A gradual decline in the gross profit margin is observed during the first year of the period. The margin decreased from 56.93% in March 2022 to a low of 55.30% by March 2023. This contraction occurred despite steady revenue levels, suggesting a period where cost of revenues grew at a slightly faster rate than top-line growth.
- Recovery and Expansion Phase (March 2023 – June 2026)
- Following the low point in early 2023, the gross profit margin entered a phase of consistent quarterly improvement. The margin surpassed its initial 2022 levels by December 2023 (56.63%) and continued to climb steadily, breaking the 58% threshold by December 2024 and the 60% threshold by March 2026. The peak margin of 60.90% was reached in June 2026.
- Revenue and Gross Profit Correlation
- Significant growth is evident in absolute terms, with revenues increasing from 68,011 million USD in March 2022 to 127,577 million USD by September 2026. Because the gross profit margin increased concurrently with this revenue growth, the gross profit expanded disproportionately faster than revenue, rising from 38,412 million USD to 76,158 million USD over the same period.
- Terminal Stability (June 2026 – September 2026)
- The expansion trend reached a plateau in the final quarter analyzed, with the margin shifting marginally from 60.90% in June 2026 to 60.86% in September 2026, suggesting that the company has reached a new, higher equilibrium of operational efficiency regarding its cost of goods sold.
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Operating Profit Margin
Alphabet Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Income from operations | 40,576) | 40,770) | 39,696) | 35,934) | 31,228) | 31,271) | 30,606) | 30,972) | 28,521) | 27,425) | 25,472) | 23,697) | 21,343) | 21,838) | 17,415) | 18,160) | 17,135) | 19,453) | 20,094) | ||||||
| Revenues | 127,577) | 119,796) | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Operating profit margin1 | 33.32% | 33.11% | 32.69% | 32.03% | 32.19% | 32.68% | 32.67% | 32.11% | 30.93% | 29.83% | 29.03% | 27.42% | 26.51% | 25.75% | 25.35% | 26.46% | 27.85% | 29.65% | 30.47% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 14.72% | 14.66% | 15.29% | 16.71% | 17.98% | 18.12% | 18.73% | 18.83% | 18.52% | 19.32% | 19.25% | 19.18% | 19.33% | 11.99% | 11.75% | 11.56% | 11.82% | 18.25% | 17.76% | ||||||
| Meta Platforms Inc. | 32.86% | 38.08% | 41.21% | 41.44% | 43.23% | 44.02% | 42.92% | 42.18% | 39.94% | 39.25% | 37.38% | 34.66% | 28.96% | 23.80% | 23.56% | 24.82% | 29.74% | 33.41% | 36.68% | ||||||
| Netflix Inc. | 31.30% | 29.68% | 29.72% | 29.49% | 29.14% | 29.51% | 27.71% | 26.71% | 25.65% | 23.82% | 22.54% | 20.62% | 18.35% | 17.51% | 16.85% | 17.82% | 18.16% | 19.13% | 20.41% | ||||||
| Walt Disney Co. | 13.66% | 13.47% | 13.53% | 13.78% | 12.69% | 12.64% | 10.07% | 9.11% | 9.08% | 5.40% | 6.87% | 5.74% | 5.22% | 8.02% | 7.42% | 7.90% | 8.01% | 7.08% | 6.93% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Operating profit margin = 100
× (Income from operationsQ3 2026
+ Income from operationsQ2 2026
+ Income from operationsQ1 2026
+ Income from operationsQ4 2025)
÷ (RevenuesQ3 2026
+ RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025)
= 100 × (40,576 + 40,770 + 39,696 + 35,934)
÷ (127,577 + 119,796 + 109,896 + 113,828)
= 33.32%
2 Click competitor name to see calculations.
The operating profit margin exhibits a distinct U-shaped trajectory over the analyzed period, characterized by an initial phase of contraction, a sustained recovery, and a final period of stabilization and growth.
- Initial Margin Compression (March 2022 – March 2023)
- A consistent downward trend is observed during the first five quarters of the period. The operating profit margin declined from 30.47% in March 2022 to a low of 25.35% by March 2023. This decline occurred despite relatively stable revenues, suggesting that operating expenses grew at a faster rate than top-line income during this interval.
- Recovery and Expansion Phase (June 2023 – December 2024)
- Beginning in June 2023, a steady upward trend in profitability emerged. The margin recovered from 25.75% to 32.11% by December 2024. This phase is marked by a strong correlation between increasing revenues—which grew from approximately 74.6 billion USD to 96.5 billion USD—and a more aggressive increase in income from operations, indicating improved operational efficiency and scalability.
- Stabilization and Peak Performance (March 2025 – September 2026)
- The final period is characterized by a plateau and subsequent gradual increase. The operating profit margin remained largely stable in the 32% range throughout 2025, before climbing to a period peak of 33.32% by September 2026. During this timeframe, income from operations surpassed the 40 billion USD threshold, while revenues reached 127.6 billion USD, reflecting a successful optimization of the cost structure relative to revenue growth.
Overall, the data indicates a successful reversal of the margin compression seen in 2022. The organization transitioned from a period of diminishing returns to a state of enhanced operational leverage, ending the period with a higher profit margin than that recorded at the start of the analysis.
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Net Profit Margin
Alphabet Inc., net profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income | 26,468) | 112,193) | 62,578) | 34,455) | 34,979) | 28,196) | 34,540) | 26,536) | 26,301) | 23,619) | 23,662) | 20,687) | 19,689) | 18,368) | 15,051) | 13,624) | 13,910) | 16,002) | 16,436) | ||||||
| Revenues | 127,577) | 119,796) | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Net profit margin1 | 50.03% | 54.77% | 37.92% | 32.81% | 32.23% | 31.12% | 30.86% | 28.60% | 27.74% | 26.70% | 25.90% | 24.01% | 22.46% | 21.05% | 20.58% | 21.20% | 23.75% | 25.89% | 27.57% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 9.20% | 8.97% | 15.00% | 16.17% | 18.33% | 18.44% | 12.71% | 13.09% | 11.92% | 12.46% | 12.64% | 12.66% | 12.53% | 5.40% | 4.71% | 4.42% | 4.46% | 11.54% | 11.96% | ||||||
| Meta Platforms Inc. | 31.15% | 29.84% | 32.84% | 30.08% | 30.89% | 39.99% | 39.11% | 37.91% | 35.55% | 34.34% | 32.06% | 28.98% | 23.42% | 18.71% | 18.27% | 19.90% | 24.41% | 28.16% | 31.20% | ||||||
| Netflix Inc. | 29.69% | 28.22% | 28.52% | 24.30% | 24.05% | 24.58% | 23.07% | 22.34% | 20.70% | 19.54% | 18.42% | 16.04% | 13.82% | 13.22% | 13.16% | 14.21% | 16.03% | 16.42% | 16.47% | ||||||
| Walt Disney Co. | 8.70% | 11.54% | 12.80% | 13.14% | 12.22% | 9.47% | 6.07% | 5.44% | 5.31% | 1.90% | 3.36% | 2.65% | 2.56% | 4.74% | 3.93% | 3.80% | 3.87% | 3.46% | 4.22% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Net profit margin = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ (RevenuesQ3 2026
+ RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025)
= 100 × (26,468 + 112,193 + 62,578 + 34,455)
÷ (127,577 + 119,796 + 109,896 + 113,828)
= 50.03%
2 Click competitor name to see calculations.
An analysis of the quarterly financial performance reveals a cyclical pattern in profitability, characterized by an initial contraction, a period of steady recovery, and a subsequent phase of exceptional margin expansion.
- Profitability Contraction (March 2022 – March 2023)
- A consistent downward trend in the net profit margin is observed during the first year of the analyzed period. The margin declined from a high of 27.57% in March 2022 to a trough of 20.58% by March 2023. This compression occurred despite revenues remaining relatively stable, indicating a period of increased operational costs or reduced efficiency in converting revenue into net income.
- Recovery and Steady Growth (June 2023 – December 2025)
- Beginning in June 2023, a sustained recovery in profitability is evident. The net profit margin climbed steadily from 21.05% to 32.81% by the end of 2025. This upward trajectory was supported by simultaneous growth in both revenues and net income, suggesting successful cost management initiatives or the scaling of high-margin revenue streams.
- Accelerated Margin Expansion (March 2026 – September 2026)
- The final quarters of the period exhibit a significant and abrupt surge in profitability. The net profit margin rose sharply from 37.92% in March 2026 to a peak of 54.77% in June 2026. This spike is primarily attributed to a disproportionate increase in net income, which reached 112,193 million US dollars in June 2026, far outstripping the growth in revenues. Although the margin moderated slightly to 50.03% in September 2026, the profitability levels remained substantially higher than historical averages.
Overall, the data indicates a transition from a period of margin pressure to one of extreme profitability, with the net profit margin more than doubling from its lowest point in early 2023 to its peak in mid-2026.
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Return on Equity (ROE)
Alphabet Inc., ROE calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income | 26,468) | 112,193) | 62,578) | 34,455) | 34,979) | 28,196) | 34,540) | 26,536) | 26,301) | 23,619) | 23,662) | 20,687) | 19,689) | 18,368) | 15,051) | 13,624) | 13,910) | 16,002) | 16,436) | ||||||
| Stockholders’ equity | 677,549) | 640,480) | 478,746) | 415,265) | 386,867) | 362,916) | 345,267) | 325,084) | 314,119) | 300,753) | 292,844) | 283,379) | 273,202) | 267,141) | 260,894) | 256,144) | 253,626) | 255,419) | 254,004) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROE1 | 34.79% | 38.13% | 33.46% | 31.83% | 32.12% | 31.85% | 32.15% | 30.80% | 30.01% | 29.15% | 28.14% | 26.04% | 24.43% | 22.82% | 22.46% | 23.41% | 26.41% | 28.20% | 29.35% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 12.23% | 12.48% | 21.29% | 20.64% | 23.29% | 23.65% | 18.13% | 18.92% | 17.11% | 18.14% | 18.67% | 18.61% | 18.34% | 7.74% | 6.86% | 6.63% | 6.73% | 15.35% | 15.18% | ||||||
| Meta Platforms Inc. | 27.63% | 26.07% | 28.97% | 27.83% | 30.16% | 36.66% | 36.01% | 34.14% | 33.76% | 32.81% | 30.60% | 25.53% | 20.81% | 16.82% | 17.18% | 18.45% | 23.23% | 26.74% | 30.30% | ||||||
| Netflix Inc. | 50.42% | 45.27% | 42.97% | 41.26% | 40.19% | 41.07% | 38.58% | 35.21% | 34.25% | 32.08% | 30.12% | 26.27% | 20.47% | 18.60% | 19.24% | 21.62% | 24.57% | 26.71% | 28.54% | ||||||
| Walt Disney Co. | 7.82% | 10.32% | 11.29% | 11.29% | 10.58% | 8.54% | 5.51% | 4.94% | 4.75% | 1.71% | 2.96% | 2.37% | 2.31% | 4.21% | 3.45% | 3.31% | 3.40% | 2.92% | 3.43% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
ROE = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ Stockholders’ equity
= 100 × (26,468 + 112,193 + 62,578 + 34,455)
÷ 677,549 = 34.79%
2 Click competitor name to see calculations.
Profitability analysis reveals a cyclical pattern characterized by an initial period of contraction followed by a sustained recovery and a subsequent atypical surge in the first half of 2026.
- Net Income Trajectory
- A downward trend was observed during 2022, with net income declining from 16,436 million in March to a period low of 13,624 million in December. From March 2023 onward, a consistent growth phase emerged, with values rising steadily through 2024 and 2025. A significant anomaly occurred in the first half of 2026, where net income spiked to a peak of 112,193 million in June before reverting to 26,468 million by September 2026.
- Stockholders' Equity Expansion
- Stockholders' equity demonstrated continuous growth throughout the entire analyzed period. The equity base increased from 254,004 million in March 2022 to 677,549 million by September 2026. The rate of accumulation accelerated markedly in 2026, coinciding with the surge in net income, indicating a substantial increase in retained earnings or capital contributions.
- Return on Equity (ROE) Dynamics
- ROE exhibited a V-shaped recovery, dropping from 29.35% in March 2022 to a trough of 22.46% in March 2023. Following this decline, a steady upward trend was established, with the ratio regaining its initial 2022 levels by the third quarter of 2024. The ROE reached a maximum of 38.13% in June 2026, driven by the extraordinary increase in quarterly net income, before moderating to 34.79% in September 2026.
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Return on Assets (ROA)
Alphabet Inc., ROA calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income | 26,468) | 112,193) | 62,578) | 34,455) | 34,979) | 28,196) | 34,540) | 26,536) | 26,301) | 23,619) | 23,662) | 20,687) | 19,689) | 18,368) | 15,051) | 13,624) | 13,910) | 16,002) | 16,436) | ||||||
| Total assets | 1,003,312) | 921,983) | 703,919) | 595,281) | 536,469) | 502,053) | 475,374) | 450,256) | 430,266) | 414,770) | 407,350) | 402,392) | 396,711) | 383,044) | 369,491) | 365,264) | 358,255) | 355,185) | 357,096) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROA1 | 23.49% | 26.49% | 22.76% | 22.20% | 23.16% | 23.02% | 23.35% | 22.24% | 21.91% | 21.13% | 20.23% | 18.34% | 16.82% | 15.91% | 15.86% | 16.42% | 18.70% | 20.28% | 20.87% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 4.39% | 4.35% | 7.23% | 7.34% | 8.28% | 8.36% | 5.87% | 6.08% | 5.44% | 5.75% | 5.85% | 5.81% | 5.80% | 2.48% | 2.18% | 2.09% | 2.12% | 5.26% | 5.25% | ||||||
| Meta Platforms Inc. | 15.71% | 15.13% | 17.86% | 16.52% | 19.26% | 24.26% | 23.78% | 22.59% | 21.66% | 22.34% | 20.53% | 17.03% | 13.75% | 10.91% | 11.62% | 12.49% | 16.12% | 19.81% | 22.74% | ||||||
| Netflix Inc. | 25.16% | 23.35% | 21.92% | 19.75% | 18.99% | 19.30% | 17.80% | 16.24% | 14.88% | 14.45% | 13.18% | 11.10% | 9.14% | 8.36% | 8.49% | 9.24% | 10.61% | 10.99% | 11.05% | ||||||
| Walt Disney Co. | 4.20% | 5.47% | 6.06% | 6.28% | 5.88% | 4.55% | 2.85% | 2.53% | 2.41% | 0.87% | 1.51% | 1.15% | 1.11% | 2.01% | 1.64% | 1.54% | 1.54% | 1.31% | 1.52% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
ROA = 100
× (Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025)
÷ Total assets
= 100 × (26,468 + 112,193 + 62,578 + 34,455)
÷ 1,003,312 = 23.49%
2 Click competitor name to see calculations.
The analysis of profitability reveals a cyclical trajectory in asset utilization efficiency, characterized by an initial period of contraction followed by a sustained recovery and a significant short-term peak in 2026.
- Initial Performance Contraction
- A downward trend in Return on Assets (ROA) is observed from March 31, 2022, to March 31, 2023, where the ratio declined from 20.87% to a period low of 15.86%. This contraction correlates with a decrease in quarterly net income, which fell from 16,436 million USD to 13,624 million USD by the end of 2022, despite a relatively stable asset base.
- Recovery and Efficiency Gains
- Starting in the second quarter of 2023, a consistent recovery in ROA is evident. The ratio climbed steadily from 15.91% in June 2023 to 22.24% by December 31, 2024. This upward movement was driven by substantial growth in net income, which increased from 18,368 million USD in June 2023 to 26,536 million USD in December 2024, outpacing the growth of total assets during the same interval.
- Asset Scaling and Profitability Stability
- Throughout 2025, ROA remained resilient, fluctuating within a narrow band between 22.20% and 23.35%. This stability is notable given the aggressive expansion of the asset base, which grew from 407,350 million USD in March 2024 to 595,281 million USD by September 2025. The ability to maintain a consistent ROA while significantly scaling assets indicates strong operational scalability.
- Exceptional Performance Variance
- An extraordinary spike in profitability is recorded for the period ending June 30, 2026, where net income surged to 112,193 million USD, driving the ROA to a peak of 26.49%. This represents a significant deviation from the historical quarterly average. However, this peak was transient, as the ROA normalized to 23.49% by September 30, 2026, coinciding with a return of net income to 26,468 million USD.
- Long-term Asset Growth Trajectory
- Total assets exhibited an accelerating growth pattern, expanding from 357,096 million USD in March 2022 to over 1 trillion USD (1,003,312 million USD) by September 30, 2026. Despite the asset base nearly tripling over the analyzed period, the terminal ROA of 23.49% exceeds the initial 2022 levels, signaling an overall improvement in the efficiency of capital employment.
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