Business
Alphabet shares fall over 10% after earnings miss
The Hindu BusinessLine·
Alphabet missed Wall Street profit and revenue targets Wednesday as AI spending drove a $9.07 billion negative free cash flow quarter, sending shares down more than 10 percent in extended trading. Third quarter revenue was $127.6 billion versus a $128.2 billion estimate. Net income fell 25 percent to $26.17 billion; adjusted earnings per share were $2.67 against a $3.02 target.
Prism
What It Means For You
- Investors holding Alphabet shares saw extended-hours drops above 10 percent after the revenue and profit miss.
- Alphabet reported $127.6 billion revenue and negative $9.07 billion free cash flow as AI capex rose from $5.9 billion burn last quarter.
- Google Cloud revenue doubled to $30.71 billion but ads missed estimates.
What's Happening
- Alphabet reported $127.6 billion revenue and negative $9.07 billion free cash flow as AI capex rose from $5.9 billion burn last quarter.
- Google Cloud revenue doubled to $30.71 billion but ads missed estimates.
- CFO Anat Ashkenazi said AI-driven capital expenditures will increase significantly in 2027 while this year's capex forecast stays unchanged.
Alphabet AI capital expenditure
- CFO Anat Ashkenazi said AI-driven capital expenditures will increase significantly in 2027 while this year's capex forecast stays unchanged.
- Alphabet reported $127.6 billion revenue and negative $9.07 billion free cash flow as AI capex rose from $5.9 billion burn last quarter.
- Google Cloud revenue doubled to $30.71 billion but ads missed estimates.
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