GoKawiilAlphabet Q3 revenue and profit miss estimates despite doubling Cloud revenue
Alphabet's third-quarter revenue rose nearly 25% year-over-year to $127.6 billion but fell short of the $128.2 billion analysts expected, while adjusted earnings per share dropped 7% to $2.67 versus the $3.02 consensus. Google Cloud was a bright spot, with revenue doubling to $30.71 billion and operating income more than tripling to $11.12 billion, and the Gemini app surpassed 1 billion monthly active users. Shares fell nearly 10% in after-hours trading following the report.
GoKawiil's interpretation of the reporting above, not reported fact.
This marks Alphabet's first quarterly miss on both revenue and profit in nearly four years, which could raise investor concern about the core advertising business even as Cloud and AI products show strong momentum. The company's signal of a significant increase in AI spending next year suggests management sees continued investment as necessary to compete, though this could pressure near-term margins and cash flow further.
- Alphabet's Q3 revenue and adjusted EPS both missed Wall Street estimates, its first such miss in about four years.
- Google Cloud revenue doubled to $30.71 billion with a backlog of $561 billion, signaling strong enterprise AI demand.
- Shares dropped nearly 10% after hours amid concerns over negative free cash flow and plans for higher AI spending next year.
Source: cnbc.com — Zev Fima, 2026-10-29
Published there as: “Our next steps for Alphabet stock after earnings disappoint at nearly every turn”
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