Alphabet’s free cash flow sinks further, Q3 capex expectations miss in worrying sign for AI trade
Google Cloud revenue more than doubled as Alphabet’s negative free cash flow widened to $9.07 billion, underscoring the cost of its AI and infrastructure push.
- On Wednesday, October 28, 2026, Alphabet Inc. reported Q3 revenue of $127.6 billion, missing analyst expectations and sending shares down 10% in after-hours trading amid concerns over massive AI infrastructure spending.
- Capital expenditures surged 114% to $51.4 billion in Q3 as Alphabet prioritized AI infrastructure buildout, driving negative free cash flow of $9.07 billion for the quarter.
- Google Cloud revenue jumped 103% to $30.7 billion, while the Gemini app reached 1 billion users, showcasing strong AI adoption despite decelerating search revenue growth.
- The earnings miss wiped nearly $400 billion off Alphabet's market value as JPMorgan Chase analysts described the slowdown in Google search as "steeper than expected."
- Alphabet CFO Anat Ashkenazi said the company will "continue to expect our capex to increase significantly in 2027," with market estimates projecting spending could top $300 billion.
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Optimism about the main technological actions has been slowed down this Thursday. Alphabet, Google’s parent company, has lost about $500 billion in stock market capitalization in a single session. The bass tone in the park has also hurt Wall Street: the Nasdaq technology index plunged 2% into opening.
The Alphabet shares, Google's parent company, dropped by about 13% on Thursday at the start of the Wall Street transactions, after the group reported a negative free cash flow, well above the analysts' estimates, and revenues from the advertising associated with the pending searches, transmits CNBC.
The key indicators on Wall Street declined at the opening of the trades today Thursday, amid renewed concerns about the sharp rise in investment costs in artificial intelligence.
Alphabet Is Having a Very Rough Day on Wall Street
A potentially historic drop for Alphabet's stock is dragging the US market lower Thursday after the company behind Google and YouTube reported wearer growth for the summer than analytics expected. Alphabet is one of the most influential stocks on Wall Street because it's one of the larget, and its 12%...
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