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Alphabet (GOOGL) earnings Q3 2026
CNBC • • general
Key Points:
- Alphabet's shares dropped over 7% following a third-quarter report showing a decline in free cash flow to $9.07 billion, significantly below the $2.70 billion expected by analysts.
- The company reported revenue of $127.58 billion, slightly below the $128.22 billion estimate, but achieving a 25% year-over-year growth, the fastest since 2021.
- Net income fell to $26.17 billion ($2.12 per share) from $34.98 billion ($2.87 per share) the previous year, while operating income missed forecasts at $40.58 billion versus $43.19 billion expected.
- Alphabet's cloud division revenue more than doubled to $30.7 billion, exceeding analyst expectations and demonstrating strong growth driven by AI offerings, with the Gemini app reaching 1 billion users.
- Capital expenditures remain high as Alphabet invests heavily in AI, with a full-year capex forecast raised to $195-$205 billion and plans to exceed $300 billion by 2027, despite a $8.66 billion loss from equity holdings in Q3.
