GOOG · 10-Q · 2026Q1 · Full report

Operating Expense Trends

Alphabet Inc. · 2026-04-30 · Importance 65 · Surprise 48 · No source text

Operating expenses were $28.9 billion for the three months ended March 31, 2026, up $5.7 billion (24% YoY), primarily driven by higher employee compensation, advertising/promotional activities, and depreciation. Research and development expenses increased $3.5 billion, driven by $2.5 billion higher employee compensation and $506 million higher depreciation. Sales and marketing rose $1.4 billion, including $600 million more advertising spend and a $300 million office space impairment charge. General and administrative expenses increased $752 million, including $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
Research and development expenses were $17,032 million for the three months ended March 31, 2026, an increase of $3.5 billion year over year. source
Sales and marketing expenses were $7,606 million for the three months ended March 31, 2026, increasing $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
Alphabet had 194,668 employees as of March 31, 2026. source

Impact estimates

metric	direction	stage	expected	basis
operating_income	negative	realized	-5.1%	Operating expenses were $28.9 billion for the three months ended March 31, 2026, an increase of 24% year over year.
operating_income	negative	realized	-3.2%	Research and development expenses were $17,032 million for the three months ended March 31, 2026, an increase of $3.5 billion year over…
operating_income	negative	realized	-1.3%	Sales and marketing expenses were $7,606 million for the three months ended March 31, 2026, increasing $1.4 billion year over year.