Alphabet (NASDAQ: GOOG) shares fell 7% on Wednesday after third-quarter EPS of $2.12 missed the analyst consensus of $3.02 by $0.90. Revenue rose 25% to $127.6 billion, narrowly beating estimates of $127.22 billion, while Google Cloud revenue surged 103% to $30.7 billion and its operating income climbed from $3.6 billion to $11.1 billion. Consolidated operating income rose 30% to $40.6 billion, but an $8.7 billion net loss on equity securities reduced net income by $6.7 billion, or $0.55 per diluted share after tax. Capital expenditures were $51.4 billion in the quarter, up from $24.0 billion a year earlier, bringing year-to-date spending to $132.0 billion, and free cash flow turned negative at $9.1 billion. The article says investors are looking for clearer evidence that heavy AI infrastructure spending can generate sustainable cash flow and profit growth.
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GOOGLearningscloud computingAI investment
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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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