Alphabet Revenue Rises 25% to $127.58 Billion; Shares Fall More Than 10%
Key Facts
Alphabet shares fell more than 10% to $289.95 in after-hours trading on Oct. 28, after the company reported third-quarter revenue of $127.58 billion, up 25% year over year but below analysts’ average estimate of $127.97 billion. The report also showed net income declining to $26.17 billion from $34.98 billion in the same period a year earlier. Earnings per share were $2.12. The Associated Press said an $8.7 billion loss on equity investments reduced earnings per share by 55 cents. GOOGL shares closed at $284.74 on Oct. 29, according to EL7 data.
Performance also fell short of some expectations in search and YouTube, two of the company’s largest sources of advertising revenue. Google Search and other advertising revenue rose 12% to $63.3 billion in the third quarter, while YouTube advertising revenue increased 9% to $11.2 billion. The Associated Press said both increases came in below some analysts’ expectations. The figures put advertising growth alongside total revenue that missed the average estimate, as shares fell after the results were announced. The agency did not identify weakness in search and YouTube as the sole reason for the share move.
By contrast, Google Cloud posted record revenue of $30.7 billion, up 103% from the third quarter a year earlier. CEO Sundar Pichai said infrastructure and AI solutions were “the primary engine of cloud growth.” The company added that core GCP services and TPU system sales also contributed to the business’s growth. Cloud results show rapid expansion alongside slower growth in some advertising businesses compared with analysts’ expectations. Pichai also said the Gemini app had reached 1 billion users, describing it as “the fastest-growing product in Google’s history.”
The business figures are set against Google’s 2026 environmental report, published in June, which covers the company’s performance and environmental strategy in 2025, along with some achievements from the first half of 2026. The company says it signed agreements to purchase more than 12 gigawatts of new clean energy in 2025, its highest annual total and more than it contracted for in the previous two years combined. Google estimated that hardware, software and computing efficiency initiatives, along with clean energy purchases, avoided more than 58 million metric tons of carbon dioxide equivalent in 2025. It also reported that data centers it owns and operates around the world diverted 88% of their operational waste from disposal during the year. The verified facts available here do not include the company’s total emissions, so the story does not include total emissions or the rate of change.
On water, Google said its portfolio of water management projects had reached 165 projects across 97 watersheds. The company added that those projects replenished about 7.7 billion gallons of water in 2025, equivalent to about 78% of its annual freshwater consumption. These indicators show part of the company’s environmental activity alongside clean energy purchases and resource efficiency. The initiatives cover data center operations and energy sources, activities that accompany the company’s expansion of technology infrastructure. The report presents these figures as part of its coverage of 2025 performance and some achievements from the first half of 2026.
Investors are focused on the capital spending plan after the results announcement, as the chief financial officer said Alphabet expects capital spending to rise significantly in 2027. The Associated Press reported that the company will provide more details during its fourth-quarter earnings call. The announcement comes as the company said infrastructure and AI solutions are driving cloud growth, with revenue up 103% in the third quarter. Search and YouTube revenue grew 12% and 9%, respectively, below some analysts’ expectations, according to the agency. The fourth-quarter call is the date the company set to provide further details on capital spending.