Alphabet Q3 Revenue Hits $127.6B but $7.66B Operating Loss and Heavy AI Capex Sink Shares 8-11%
GOOG is trading near its 52-week low of $267.17 (8.7% above the low) on elevated volume (2.1× avg).
Summary
Alphabet reported Q3 revenue of $127.6B, up 25% year over year, with Google Cloud accelerating to $30.71B (+103%) and Search ads at $63.35B. The problem is the bottom line: a $7.66B operating loss at the Alphabet level, driven by AI R&D and cloud spending, plus GAAP net income of $26.17B ($2.12 EPS) that came in below expectations on operating income. Free cash flow turned negative at roughly -$9.07B as capex ran ~$51.4B in the quarter, and long-term debt ballooned to $125.1B from $21.6B a year earlier. Shares fell 8-11% after hours to around $289.75, extending the pressure from the August capex raise to $195-$205B and the AI leadership shakeup. Management points to Gemini at 1B users and says AI Mode queries monetize below regular searches, while FX and an EU ad rule change hit search revenue. The company plans roughly $205B in server-farm capex this year, so the cash burn story is not going away.
At the time of this announcement, GOOG was trading at $290.52 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 9 out of 10. Source: Wiseek News.