Alphabet’s third-quarter results, reported Wednesday after the close, fell short on nearly every headline number — and investors punished the Google parent immediately. Revenue came in at $127.6 billion, up 25% year on year but below the $128.2 billion analysts had expected, while adjusted earnings of $2.67 a share missed the $3.02 consensus. Net income fell 25% to $26.17 billion.
The figure that rattled Wall Street most was cash flow. Free cash flow was negative $9.07 billion, against expectations of roughly breakeven — the second straight negative quarter after a $5.9 billion deficit in Q2, and the first time in Alphabet’s 22 years as a public company that the figure has gone negative in consecutive quarters. The shortfall reflects the staggering scale of Alphabet’s AI infrastructure build-out, with 2026 capital spending now guided at $195-205 billion and management warning of a “significant increase” again in 2027.
It was not all bleak. Google Cloud revenue more than doubled to $30.71 billion, up 103%, a sign the company’s AI bets are finding commercial traction. Seeking to reassure the market, Alphabet preemptively announced Gemini 4 Carbon alongside the results, promising its next-generation model is on track.
The market was unimpressed. Shares plunged about 10% in after-hours trading, wiping nearly $400 billion from Alphabet’s market value, according to Reuters — a reported figure that underlines how severely investors are now judging Big Tech’s AI spending. The contrast with rivals reporting steadier cash flows made for a brutal trading session and a sobering reminder that growth alone no longer buys patience.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.