Alphabet's search and other segment revenue rose 12% year over year to about $63 billion, falling short of estimates for a second straight quarter, even though Google said search query growth was its strongest in five years. The gap between usage and revenue is becoming harder to dismiss as people turn to AI bots and agents, including Google's own tools. Free cash flow was negative $9 billion for the quarter, three times the estimated deficit, and the stock fell about 10% in extended trading. Cloud revenue more than doubled to nearly $31 billion with backlog around $560 billion, while search revenue growth slowed from 19% in the first quarter to 17% in the second and 12% in the third. UBS and Mizuho analysts said the results revive fears that AI is cannibalizing Search and YouTube.
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GOOGLearningsartificial intelligenceadvertisingcloud computing
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Related tickers and likely impact
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/28/2026 | 325.61 |
| Change that session | +1.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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