Alphabet’s “Other Bets” Loss Widens to $2.047 Billion in Third Quarter
Key Facts
Alphabet posted an operating loss of $2.047 billion in its “Other Bets” segment in the third quarter of 2026, compared with $1.426 billion in the same period a year earlier, according to the company’s filing with the U.S. Securities and Exchange Commission. Segment revenue was $372 million, up from $344 million a year earlier. The company did not attribute the increase in the loss to a specific cause in its filing, so this report does not link it to Waymo’s expansion or any other activity within the segment. The results came in a quarter in which the group’s revenue rose to $127.577 billion from $102.346 billion, a 25% year-over-year increase. But revenue fell short of the analyst consensus of $127.97 billion, according to the Associated Press, citing a FactSet survey.
For the overall results, operating income rose to $40.576 billion from $31.228 billion in the third quarter of 2025. But net income available to common shareholders fell to $26.170 billion, compared with $34.979 billion a year earlier. The Associated Press reported that losses on equity investments weighed on net income and earnings per share, and noted that revenue fell short of expectations. The comparison shows the indicators moving in different directions: operating income improved alongside revenue growth, while net income declined year over year. In after-hours trading on October 28, the stock fell about 9% to $295.20 during the first hour, according to the agency’s report published by The Washington Post.
The segment’s results were part of a set of figures showing growth in Alphabet’s revenue, but the third-quarter filing reports “Other Bets” losses and sales separately from the group total. The segment’s operating loss exceeded its revenue, reaching $2.047 billion against revenue of $372 million in the quarter. The segment had posted an operating loss of $1.426 billion and revenue of $344 million in the third quarter of 2025. The published filing does not specify an explanation for the widening loss, while presenting the segment figures on a year-over-year basis. Waymo’s international expansion plans include announced timelines and projects that are separate from these financial figures.
In Munich, Waymo said it aims to open a commercial ride-hailing service to the public near the end of 2027, following a period of manual driving, mapping and local testing. The target date puts the commercial launch after completion of the preparatory work the company cited in its announcement about the city. On October 8, Waymo closed a $5 billion term loan, which it described as its first debt financing. The company said the financing would support expansion in the United States and international markets. At the parent-company level, Alphabet issued senior unsecured notes in the third quarter, with net proceeds of $28.7 billion for general corporate purposes.
Capital spending plans keep infrastructure investment among the issues markets will be watching. Chief Financial Officer Anat Ashkenazi said the 2026 capital expenditure range of $195 billion to $205 billion was unchanged, and that the company expects spending to increase significantly in 2027. The Associated Press said more details on spending expectations would be presented on the fourth-quarter call. Meanwhile, the company’s filing highlights the widening “Other Bets” loss alongside higher revenue and operating income, while the after-hours report shows the stock falling following the results. These indicators remain in focus as the company provides details on capital spending during the fourth-quarter call.