Alphabet reported Q3 EPS of $2.67, down 7% year over year, on revenue of $127.6 billion (+25%), missing estimates of $3.00 and $127.9 billion and marking its first combined top- and bottom-line miss since Q4 2022. Free cash flow was negative $9.07 billion, capex reached $51.4 billion with the full-year forecast kept at $195 billion to $205 billion, and long-term debt rose to $125.1 billion from $21.6 billion a year earlier. Google Cloud revenue grew 103% to about $30.7 billion, ahead of expectations, but Search grew 12% versus roughly 14% expected, fueling concern that AI could cannibalize the franchise. Caterpillar reported EPS of $7.20, up 45.5% and above estimates, but revenue of $20.7 billion (+17%) fell short of $20.8 billion, with Power & Energy up 75% and FY26 revenue growth expectations unchanged.
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