Alphabet Posts First Earnings Miss Since 2022; Shares Drop 10% After Hours
GOOG is trading near its 52-week low of $267.17 (8.9% above the low) on elevated volume (2.0× avg).
Summary
Alphabet missed on both lines for the first time in four years: Q3 revenue of $127.58 billion came in below the $128.22 billion estimate and adjusted EPS of $2.67 fell short of $3.02. Free cash flow turned negative at $9.07 billion, far worse than the $2.7 billion analysts expected, and long-term debt has ballooned nearly five-fold to $125.1 billion from $21.6 billion a year ago. Management guided 2027 capex toward roughly $300 billion while holding the 2026 range at $195-205 billion, so the spending ramp is not slowing. The one bright spot was Google Cloud, where revenue more than doubled to $30.7 billion and beat the $28.7 billion estimate, with management citing strong demand for the new Argon Gemini model. Equity stakes delivered a $99.03 billion windfall from SpaceX and Anthropic but still produced an $8.66 billion net loss for the quarter. Shares fell 9.5% after hours to $291.36 after closing up 1.6%; management said it will detail the 2027 capex plan on the Q4 earnings call.
At the time of this announcement, GOOG was trading at $290.96 on NASDAQ in the Technology sector, with a market capitalization of approximately $4T. The 52-week trading range was $267.17 to $404.47. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: CNBC TV18.