GOOGL · 10-Q · 2026Q1 · Full report

Operating Expense Trends

Alphabet Inc. · 2026-04-30 · Importance 59 · Surprise 48 · No source text

Operating expenses were $28.9 billion for the three months ended March 31, 2026, an increase of 24% year over year, driven primarily by higher employee compensation, advertising and promotional activities, and depreciation. Research and development expense increased $3.5 billion to $17.0 billion, driven by $2.5 billion higher employee compensation and $506 million higher depreciation. Sales and marketing expense increased $1.4 billion to $7.6 billion, driven by $600 million more in advertising and promotional activities, $404 million in employee compensation, and $300 million of office space impairment charges. General and administrative expense increased $752 million to $4.3 billion, primarily due to $272 million higher employee compensation and $208 million in legal and other matters.

Key facts

• Operating expenses were $28.9 billion for the three months ended March 31, 2026, an increase of 24% year over year. source
• Sales and marketing expenses were $7,606 million for the three months ended March 31, 2026, an increase of $1.4 billion year over year. source
• General and administrative expenses were $4,291 million for the three months ended March 31, 2026, an increase of $752 million year over year. source
• As of March 31, 2026, Alphabet had 194,668 employees. source

Impact estimates