Alphabet shares fell more than 8% after third-quarter revenue and operating income missed analyst estimates, even though Google Cloud revenue more than doubled. Revenue rose 25% to $127.6 billion, short of the $128.22 billion expected, while EPS was $2.12 and net income was $26.5 billion. Google Cloud revenue reached $30.7 billion, above the $29.15 billion estimate, and operating income of $11.1 billion beat the $9.75 billion forecast, with an operating margin of about 36.2%. Search and other revenue of $63.4 billion fell short of the $64.99 billion estimate, and total operating income of $40.6 billion trailed the $43.23 billion forecast; free cash flow was negative $9.1 billion. Capital expenditure of $51.4 billion came in below the $55.2 billion analysts expected, while CEO Sundar Pichai said demand for AI infrastructure and TPU systems remains strong and the Gemini app has reached one billion users.
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GOOGLcloud computingartificial intelligenceearnings
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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% |
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