Alphabet beats revenue growth but misses estimates; shares fall
In short
Alphabet reported third-quarter revenue of USD 127.58 billion, up 25% from a year earlier, and net income of USD 26.17 billion for July-September.
Even with strong growth, the company missed analyst revenue expectations and its shares fell after hours on Wednesday. Investors are also worried about heavy AI spending and what AI search could mean for ads.
What the reporting says
Alphabet reported third-quarter revenue of USD 127.58 billion and net income of USD 26.17 billion for July-September, but the company still fell short of Wall Street expectations and its stock dropped in after-hours trading Wednesday. The reports also say Google parent Alphabet is spending heavily on AI infrastructure, which is weighing on cash flow, while AI-powered search raises questions about advertising. The exact stock move was not stated.
Why it matters
Alphabet said third-quarter revenue rose 25% year on year to USD 127.58 billion and net income was USD 26.17 billion for the July-September period, but the results still came in below Wall Street expectations. The reports say investors are uneasy because Alphabet is spending heavily on AI infrastructure, which is pressuring cash flow, and because AI-powered search could affect its advertising business. The after-hours share decline was reported, but the size was not stated.