Alphabet falls more than 10% after disappointing results
By the AFREEQUE newsroom, based on Infomediaire
Alphabet, Google’s parent company, reported quarterly revenue of $127.6 billion, below expectations, while earnings per share reached $2.12. The share price fell by more than 10% after the session, as investors penalised 11% advertising growth, according to Infomediaire.
Alphabet shares, the parent company of Google, fell by more than 10% in after-hours trading on Wednesday 28 October after the publication of quarterly results below forecasts, Infomediaire reports. The group announced revenue of $127.6 billion in the third quarter of 2026, against $128 billion expected, and earnings per share of $2.12, compared with the $3.02 anticipated.
Advertising revenue rose by 11%, well below the nearly 13% expected by analysts. This development is fuelling fears that artificial intelligence assistants and agents could divert some uses away from Google Search. Net profit fell by 25% to $26.2 billion, partly because of a negative accounting impact of $8.7 billion on the valuation of investments, notably in SpaceX.
Google Cloud nevertheless saw its revenue surge by 102% year on year, following an 82% rise in the previous quarter. Its order backlog stood at $561 billion at the end of September. Alphabet invested $51 billion in its infrastructure during the quarter, compared with $45 billion in the previous quarter, an effort that reduced its cash holdings by $9 billion. The group also leases capacity from external providers.
Alphabet is simultaneously accelerating the development of its AI models with Gemini 4 Carbon, following Gemini 4 Argon. Sundar Pichai, Google’s chief executive, said the Gemini app had surpassed one billion users. The results come after the international expansion of Google’s AI advertising, announced on 28 October in Google’s AI advertising.
