Alphabet shares fall about 13% after third-quarter revenue and profit miss estimates; Google Cloud revenue doubles

Alphabet, the parent company of Google, reported third-quarter revenue of $127.58 billion after the US market close on Wednesday 28 October, up 25% from a year earlier but below the $128.22 billion analysts had expected, according to LSEG estimates cited by CNBC.

Net income fell to $26.17 billion, or $2.12 per share, from $34.98 billion a year earlier. Adjusted earnings of $2.67 per share were below the $3.02 forecast, CNBC reported, describing it as the company’s first miss on both revenue and earnings in nearly four years. Alphabet reported an $8.66 billion loss on its equity holdings in the quarter, according to CNBC.

Free cash flow was negative at $9.07 billion, against the $2.70 billion analysts had expected. Capital spending was $51.36 billion. Alphabet kept its 2026 capital spending forecast of $195 billion to $205 billion. “We continue to expect our capex to increase significantly in 2027,” finance chief Anat Ashkenazi told analysts. Long-term debt rose to $125.1 billion from $21.6 billion a year earlier, CNBC reported.

Google Cloud revenue more than doubled to $30.7 billion, above the $28.7 billion analysts had forecast. Search revenue rose 12% to $63.35 billion, below the $64.96 billion estimate. Chief executive Sundar Pichai said the Gemini app had reached 1 billion users.

As of 17:54 GMT on Thursday, Alphabet’s Class A shares were down 13.0% at $282.50, according to Yahoo Finance data. Investopedia reported the fall left the shares lower for 2026.

See also: Microsoft, Alphabet and Amazon report results this week.