Alphabet shares fell after Q3 earnings as search revenue growth slowed to 12%, reaching $63.35 billion and missing the $64.96 billion estimate. The company cited currency swings, World Cup timing, the end of the EU de minimis exception and lower monetization of AI queries. Google Cloud revenue more than doubled to $30.7 billion, and cloud operating income more than tripled to $11.1 billion as margins rose from 23.7% to 36.2%. Total revenue rose 25% to $127.6 billion, while EPS fell 26% to $2.12, largely due to a paper loss on its SpaceX investment; adjusted EPS of about $2.67 still missed the $3.02 estimate. The author argues the stock trades at a forward P/E just above 18.5 times 2027 estimates and that the search issue is fixable.
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GOOGLearningsvaluationcloud computing
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Related tickers and likely impact
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/29/2026 | 283.75 |
| Change that session | -12.66% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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