Business · Companies · 36 mins ago
Alphabet's third-quarter profit falls 25% as revenue grows
Alphabet, Google's parent company, reported its third-quarter results for July through September 2026.
Revenue rose 24.6% from a year earlier to $127.6 billion, while net profit fell 25.2% to $26.2 billion.
Google Cloud revenue more than doubled to $30.7 billion, helped by demand for the company's AI infrastructure and services.
Advertising revenue, Alphabet's larger business, grew 10.6% to $82 billion.
Free cash flow was negative for a second straight quarter, meaning the company spent more on investments than its operating activities generated in cash.
Alphabet's shares fell nearly 10% in after-hours trading after the results were released.
Alphabet reported third-quarter net income available to common shareholders of $26.17 billion, down 25% from a year earlier.
Revenue rose 25% year over year to $127.6 billion but fell short of some analysts’ estimates.
Google Cloud revenue more than doubled to $30.71 billion, while Google’s core advertising revenue missed expectations.
Free cash flow was negative $9.07 billion, as spending on cloud capacity and AI research increased.
Alphabet shares fell more than 10% in extended trading after the results.
- Who
- Alphabet, the parent company of Google, reported the results.
- What
- Third-quarter revenue grew, but net income available to common shareholders fell 25%. The company also reported negative free cash flow.
- When
- The results were reported on Wednesday, October 28, 2026, for the quarter ended September 30.
- Where
- Not stated
- Why
- Spending to expand cloud capacity and fund AI research contributed to the cash burn, while Google’s core advertising revenue fell short of expectations.
Investors concerned about spending and growth
Bullish analysts
Growth and spending
Investors concerned about spending and growth
Investors worried about sluggish Search growth and the heavy cost of the AI buildout.
Bullish analysts
Dan Ives said Google Cloud’s strong results mattered more than the weaker Search figure.
Cash flow
Investors concerned about spending and growth
Investors sold shares as free cash flow turned more deeply negative.
Bullish analysts
Luke Lango argued the market was reacting to an accounting loss and described the concern as a funding problem, not a lack of demand.
Alphabet announced it had raised $84.8 billion in equity, including $10 billion from Berkshire Hathaway, to fund an AI buildout.
Alphabet reported negative free cash flow of $5.9 billion.
Google announced its Gemini 4 Carbon model as Alphabet reported third-quarter results.
Alphabet reported third-quarter revenue of $127.6 billion and negative free cash flow of $9.07 billion.
- Revenue
- $127.6 billion in the third quarter, up 25% year over year
- Net income
- $26.17 billion available to common shareholders, down 25%
- Free cash flow
- Negative $9.07 billion
- Google Cloud revenue
- $30.71 billion, up 103% year over year
- Google core advertising revenue
- $82.01 billion
- Shares
- Fell more than 10% in extended trading
20 sources
Google’s Flashy New Model Gets Outshone By Its Financial Troubles
Alphabet Q3 revenue jumps 25% on AI-fueled search, cloud
Internet-Riese: Langsameres Wachstum in Google-Kerngeschäft alarmiert Börse
Alphabet、25％増収も純利益は25％減 Google Cloudは103％増収、AI投資負担増
Why Alphabet’s stock could see its worst drop in years after the latest results
Google faz mais buscas com IA, mas ganha menos por elas
Alphabet shares fall over 10% after earnings miss as AI spending drives cash burn
Alphabet, matriz de Google, reduce un 25% el beneficio en el tercer trimestre
Alphabet'in kârında yüzde 25'lik artış
Alphabet cai após receita abaixo das expectativas e maior consumo de caixa
Alphabet se deja un 9% en Bolsa tras reportar una caída de 'cash flow' mayor de la prevista
Alphabet reduce su beneficio un 33% en el tercer trimestre mientras dispara su gasto en IA
Google-Mutter Alphabet verfehlt Umsatzerwartungen - Aktie stark unter Druck
Alphabet’s Google Cloud revenue doubles to $31 billion as cash flow stays deep red
Google says its investments in AI are driving more searches
Alphabet reports higher cash burn on back of heavy cloud spending, shares dive
Alphabet reports Q3 2026 revenue of $127.6 billion
What people are saying
We had a strong quarter and are now on a half-trillion dollar revenue run rate.
Our AI investments are driving overall Search query growth, including commercial queries
In fact, our year-over-year query growth rate is the highest it’s been in the last five years.
This is the Cloud print we have been waiting for, and in our view it matters more than a lighter Search number the bears will lean on tonight