Google Cloud Doubles but Search Triggers Alphabet Sell-Off
By Damilola Esebame
AI summary of the source article
Alphabet's stock dropped 10.4% after-hours following third-quarter EPS of $2.12 that missed consensus, despite revenue rising 25% to $127.6 billion. Slower search advertising growth and heavy AI capital expenditures weighed on performance despite surging Google Cloud revenue.
Key facts
- Alphabet reported Q3 revenue of $127.6 billion and GAAP diluted EPS of $2.12, missing consensus expectations.
- Google Cloud revenue jumped 103% to $30.7 billion, while search and other advertising revenue missed estimates at $63.35 billion.
- Quarterly capex hit $51.4 billion, contributing to a negative free cash flow of $9.1 billion, with 2026 capex guided at $195 billion to $205 billion.
Source excerpt · FinanceFeeds
Alphabet reported third-quarter revenue of $127.6 billion, a 25% increase from a year earlier, but the stock fell 10.4% in after-hours trading on October 28 after earnings per share of $2.12 missed the $3.02 consensus by nearly 30%. The $2.12 figure represents GAAP diluted earnings per share, as confirmed in Alphabet's 8-K filing. Some outlets cite an adjusted figure of $2.67 that excludes the equ…