Alphabet Misses Q3 Estimates as Stock Falls After Hours
YouTube ad revenue grew 9% to $11.2 billion in the third quarter. Alphabet's overall results missed analyst estimates, and its stock fell.
- $127.6 billion in total revenue, up 25% from a year earlier.
- $2.12 earnings per share, against analyst estimates near $3.01.
- $30.7 billion in Google Cloud revenue, more than double a year earlier.
- 8% to 9% drop in Alphabet shares after hours.
Why it matters: Alphabet is spending heavily on AI infrastructure, and investors want returns. Capital spending hit $51.4 billion, up from $24 billion a year earlier.
- Free cash flow came in at negative $9.1 billion.
- YouTube's ad growth slowed from 13% in the second quarter.
How 10 sources split on this story
Where they split: Outlets differ on how big the miss was: some treat revenue as roughly in line, while others call it a miss on both lines.
Center coverage, 4 sources: The center weighs the earnings miss against strong cloud growth and heavy AI spending.
Left coverage, 6 sources: The left focuses on YouTube's slowing ad growth and Alphabet missing Wall Street targets.
What’s next: Alphabet expects full-year 2026 capital spending of $195 billion to $205 billion, driven by AI data centers.
- YouTube reported more than 150 million Music and Premium subscribers, including trials.
- Is the earnings-per-share figure comparable to analyst estimates, given the $8.7 billion investment loss?
- Will YouTube's slowing ad growth continue into the fourth quarter?
