Google plunged nearly 10% after hours.
Alphabet reported its third-quarter 2026 results: cloud business surged, but profits and cash flow came under pressure, making for a mixed picture. Shares fell about 9.84% after hours.
A few key points:
• Revenue totaled $127.6 billion, up 25% year over year, marking the 13th consecutive quarter of double-digit growth
• Google Cloud revenue soared 103% year over year to $30.7 billion, driven primarily by demand for AI infrastructure and TPUs
• Net income was about $26.2 billion, down roughly 25% year over year, mainly due to losses on equity investments; heavy AI capital spending also weighed on free cash flow
• Google Services revenue grew 11% to $96.3 billion, while search query growth reached its highest rate in nearly five years
The cloud business shows that AI is gaining commercial traction, but in the short term, the market is more focused on capital spending and earnings pressure.
$GOOGL
Alphabet reported its third-quarter 2026 results: cloud business surged, but profits and cash flow came under pressure, making for a mixed picture. Shares fell about 9.84% after hours.
A few key points:
• Revenue totaled $127.6 billion, up 25% year over year, marking the 13th consecutive quarter of double-digit growth
• Google Cloud revenue soared 103% year over year to $30.7 billion, driven primarily by demand for AI infrastructure and TPUs
• Net income was about $26.2 billion, down roughly 25% year over year, mainly due to losses on equity investments; heavy AI capital spending also weighed on free cash flow
• Google Services revenue grew 11% to $96.3 billion, while search query growth reached its highest rate in nearly five years
The cloud business shows that AI is gaining commercial traction, but in the short term, the market is more focused on capital spending and earnings pressure.
$GOOGL
