Alphabet (NASDAQ: GOOG) shares fell more than 10% in premarket trading on Wednesday after third-quarter earnings came in below Wall Street expectations, as slower growth in search advertising overshadowed strong cloud results. Earnings per share were $2.12 against a consensus of $3.02, while revenue rose 25% to $127.6 billion, slightly above the $127.22 billion expected. Google Cloud revenue jumped 103% to $30.7 billion and operating income more than tripled to $11.1 billion. Investors also weighed Alphabet's heavy AI infrastructure spending and negative free cash flow. Advertising revenue grew at its slowest pace in five quarters, even though search query growth hit its fastest rate in five years, and CEO Sundar Pichai said searches through AI Mode were generating revenue more slowly than traditional searches.
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GOOGLcloud computingearningsadvertising
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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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