Alphabet Shares Plunge 12% as Q3 Profit Falls and AI Commitments Top $1 Trillion
GOOG is trading near its 52-week low of $268.43 (4.0% above the low) on elevated volume (5.1× avg).
Summary
Alphabet's Q3 revenue came in at $127.6B, up 25% year over year, with Google Cloud more than doubling to $30.71B. The problem is underneath: GAAP EPS of $2.12 and adjusted EPS of $2.67 missed estimates, net income fell to $26.2B from $35.0B a year ago, and an $8.7B equity-investment loss dragged on the bottom line. Capex of roughly $51.4B pushed free cash flow to about negative $9.1B, and the company kept 2026 capex guidance at $195–$205B while flagging higher 2027 spending. Shares fell about 12% in a single day, the largest one-day drop on record, cutting market value to roughly $3.5 trillion. The disclosure of up to $1.08 trillion in future commitments tied to Search, YouTube, Gemini and Cloud, plus a plan to issue 36M shares for about $85B of AI funding, reframes this as a spending-and-dilution story rather than a growth story. Q4 guidance already flags stronger FX headwinds on Search and YouTube ad revenue and tougher year-over-year comps.
At the time of this announcement, GOOG was trading at $279.17 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.5T. The 52-week trading range was $268.43 to $404.47. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.