GoKawiil
Tech News
Alphabet's shares dropped more than 10% in after-hours trading after earnings of $2.12 per share missed estimates of $3.01, even as quarterly revenue rose 25% to $127.6 billion. Executives said Google's AI Search mode generates less ad revenue per query than classic search, and capital expenditure more than doubled year over year to $51.4 billion, pushing free cash flow negative.
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.
Alphabet's Other Bets segment, which includes Waymo, posted $372 million in third-quarter revenue, just 0.3% of total company sales, while its operating loss grew to $2.05 billion from $1.43 billion a year earlier. CEO Sundar Pichai highlighted Waymo's growth to 15 U.S. cities plus new service in San Antonio, San Diego and Tampa, with planned expansion into Canada, Germany, Singapore and Spain.
Jim Cramer said on CNBC's Mad Money that companies including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla, SpaceX, Anthropic and OpenAI have grown so dominant and profitable that they resemble 'nation states.' He pointed to Microsoft's latest earnings as evidence, noting revenue grew 19%, Azure cloud revenue jumped 48%, and capital spending came in below Wall Street forecasts, sending shares up 4% after hours.
In its Q3 2026 earnings report, Alphabet CEO Sundar Pichai said combined YouTube Music and YouTube Premium subscribers have surpassed 150 million worldwide, up from 125 million reported earlier this year. The figure includes users on free trials, consistent with how the prior count was calculated.
Google announced during Alphabet's Q3 earnings call that it is rolling out ads within AI Overviews and AI Mode to international markets, alongside new multi-turn ad formats in the U.S. Alphabet reported $127.6 billion in revenue, up 25% year over year, but Search ad growth slowed to 12% from 17% in Q2 and 19% in Q1, and Alphabet shares fell 8% after the results. Chief business officer Philipp Schindler said click-through rates on sponsored listings in AI Mode now match those of organic listings.
Alphabet reported quarterly results that fell short of analyst expectations, with growth in search advertising revenue slowing. The company's cloud-computing division showed strength, but Alphabet posted negative free cash flow of $9.1 billion for the period.
Alphabet reports third-quarter earnings after market close, with analysts polled by LSEG expecting EPS of $3.02 and revenue of $128.2 billion, up 25% year-over-year. Capital expenditures are projected to jump 130% to $55.2 billion, continuing a trend that has already pushed free cash flow negative for the first time, while cloud revenue is expected to grow 90% to $28.7 billion.
Alphabet reported Q3 earnings showing consolidated revenue of $127.6 billion, up 25% year-over-year, with Google Search & other revenue rising 12%. CEO Sundar Pichai said AI investments are driving query growth, including commercial queries, at the fastest rate in five years. Google Cloud revenue jumped 103% to $30.7 billion, and YouTube Music and Premium subscriptions topped 150 million including trials.
An opinion column argues that major technological trajectories, including nuclear weapons development, were not freely chosen by the public but shaped by government decisions during the Cold War. The author suggests that without continued U.S. nuclear development, the geopolitical outcome of the Cold War—and by extension cultural and technological norms—could have been different.
Waymo has finalized a $5 billion debt agreement with prominent lenders including PIMCO, Blackstone, and others, marking its first such financing. The funds aim to support the company's growth in existing and new markets across the US, Europe, and Japan, as it transitions into a larger commercial enterprise. Previously, Waymo relied on equity funding from Alphabet and other investors, with recent rounds valuing the company at over $126 billion.
A post on Hacker News poses a hypothetical in which a US government nationalizes Alphabet via constitutional amendment to restore Google Search to its 2010-era quality and strip out all LLM features. The author asks commenters what they would be willing to accept or trade for a search engine that works again, after what they describe as years of commercial degradation of the product.