Google Misses Revenue Expectations, Alphabet Stock Sinks in Early After-Hours Trading
YouTube ad revenue rose 9% to $11.2 billion, but Alphabet missed earnings per share estimates and investors questioned returns on AI spending.
- Alphabet shares fell 8% in after-hours trading on Wednesday after the company reported third quarter revenue of $127.6 billion, missing the $127.8 billion analyst consensus forecast.
- Earnings per share represented a much bigger miss, coming in at $2.12 versus the $3.01 analyst outlook, though total revenue increased 25% year-over-year, marking 13 consecutive quarters of double-digit growth.
- Google Cloud revenue surged 103% to $30.7 billion, while YouTube ad revenue grew 9% to hit $11.2 billion; Alphabet surpassed 150 million YouTube Music and Premium subscribers globally.
- CEO Sundar Pichai called the July-to-September period a "strong quarter," noting Gemini AI reached 1 billion users, making it "the fastest-growing product in Google's history." Gemini 4 Argon and Carbon models remain at the frontier.
- Along with Big Tech peers Meta, Microsoft, Nvidia and Amazon, Alphabet faces mounting scrutiny from Wall Street as investors demand returns on massive AI infrastructure spending.
30 Articles
30 Articles
Google misses revenue expectations, Alphabet stock sinks in early afte
Google parent company Alphabet Inc. came up short of Wall Street expectations despite strong revenue growth in its third-quarter results, which sent its stock falling in after-hours trading Wednesday. The Mountain View, California-based company said its net
Shares of Google parent Alphabet fell more than 7 percent in after-hours trading after the company reported third-quarter revenue and profit that fell short of expectations. Although the company has again significantly increased its spending on artificial intelligence, to more than $50 billion, its core search advertising business has grown more slowly than expected, the Financial Times reported.
Alphabet (NASDAQ:GOOG) Posts Quarterly Earnings Results, Misses Estimates By $0.89 EPS
Alphabet (NASDAQ:GOOG - Get Free Report) issued its earnings results on Wednesday. The information services provider reported $2.12 EPS for the quarter, missing analysts' consensus estimates of $3.01 by ($0.89). Alphabet had a return on equity of 51.32% and a net margin of 54.77%. The firm had revenue of $127.58 billion for the quarter, compared to analyst estimates of $127.97 billion.
Alphabet, Google's controlling company, recorded net profit of US$ 26.17 billion in the third quarter, representing a decrease of about 25.2% over the same period last year. Diluted by share, the profit went from US$ 2.87 billion to US$ 2.12. On the same basis of comparison, the revenue advanced 25%, to US$ 127.58 billion. According to the company, in the third quarter of 2026, the net effect of the loss with equity securities of US$ 8.7 billion…
The slowing down of advertising is leading Google's parent company, whose action fell by more than 7% on Wednesday, October 28th in Wall Street.
YouTube Ad Revenue Rises 9% But Parent Alphabet Misses Wall Street's Q3 Targets; Stock Drops
YouTube ad revenue grew 9% in the third quarter to hit $11.2 billion, but parent Alphabet’s stock dropped after overall financials undershot Wall Street expectations. Shares in Alphabet fell 8% in after-hours trading on the earnings news. Total revenue of $127.6 billion increased 25% over the year-earlier quarter, marking a 13th consecutive quarter of double-digit […]
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