Alphabet's third-quarter 2026 revenue rose 25% to $127.6 billion, but shares came under pressure after the report as investors grew concerned about advertising and AI spending. Google Search revenue reached $63.4 billion, up 12%, though management acknowledged that AI Mode queries currently generate less ad revenue than traditional Search. Google Cloud revenue more than doubled, up 103% to $30.7 billion, and its backlog reached $561 billion, with over 55% expected to be recognized within 24 months. Alphabet expects 2026 capital expenditures of $195–205 billion and indicated spending could rise substantially next year, pushing third-quarter free cash flow to negative $9.1 billion. Even so, operating income climbed 30% to $40.6 billion, with operating margin improving to 32%.
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GOOGLearningscloud computingAI investmentadvertising
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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 10/30/2026 | 279.76 |
| Change that session | -1.43% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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