GOOGL shares dropped about 11% after hours as third-quarter profit was squeezed by heavy AI infrastructure spending and an $8.7 billion loss on its equity investment portfolio. Consolidated revenue rose 25% to $127.58 billion, while net income available to common stockholders fell to $26.17 billion, or $2.12 per share, below the $2.99 per share Wall Street expected. Google Cloud revenue rose 103% to $30.71 billion and its operating income reached $11.12 billion, which management linked to enterprise AI demand and sales of its TPU hardware. Free cash flow was negative $9.1 billion, the second consecutive negative quarter, and analysts polled by Fiscal.ai expect it to stay negative until the quarter ending September 2027. Alphabet also issued $28.7 billion of senior unsecured debt and raised $12.4 billion through its at-the-market share issuance program.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: GOOGL Stock Slumps 11% After-Hours: Alphabet’s Surge in AI Spending Pressures Third-Quarter Profits And Cash Flows
Read the original on Yahoo Finance ↗
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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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