Alphabet (GOOGL) shares fell 10% in overnight trading after third-quarter revenue and profit both missed market expectations. Google Search & other revenue grew 12% to $63.3 billion, slowing from 17% in the second quarter, while total advertising sales rose 10.6% to $82.01 billion. Chief Business Officer Philipp Schindler attributed the slowdown mainly to foreign exchange rates, along with weaker spending by some Asia-Pacific retail advertisers affected by the EU's elimination of its de minimis exemption, and an unusually strong second quarter boosted by FIFA World Cup advertising. He also said AI Mode has fewer built-in ads and therefore generates less revenue. Meanwhile, Google Cloud sales rose a record 103% to $30.71 billion and total revenue rose 25% to $127.6 billion; analyst Gene Munster said the 12% search growth was below expectations and estimated growth could land around 11% in the December quarter, versus the 13.5% the Street currently expects.
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earningsadvertisingartificial intelligenceGOOGLcloud 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 10/28/2026 | 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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