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Alphabet reported third-quarter adjusted earnings per share of $2.67 and revenue of $127.58 billion, both below analysts' expectations. According to the Google Blog, revenue for the quarter grew 25% year over year, with annualized revenue reaching $500 billion, and Google Cloud revenue grew 103%; CEO Sundar Pichai said the first-party model API processes nearly 32 billion tokens per minute, 40% more than the previous quarter, and the Gemini app has reached 1 billion users. Solidot reported that the stock price fell nearly 10% after the earnings release, and the company disclosed that revenue generated by AI search is lower than that of traditional search, with overall search business revenue growing 12% year over year to $63.25 billion; Chief Business Officer Philipp Schindler said the slowdown in search business growth stems from the lower monetization capability of AI Mode. Spending for the quarter was $51.4 billion, and net profit was $26.17 billion, lower than $35 billion in the same period last year.
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Microsoft, Google, and Amazon Earnings Side by Side: The AI Infrastructure Race Reaches a WatershedDevelopments
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Oct 30
TMTPost · AGI
Microsoft, Google, and Amazon Earnings Side by Side: The AI Infrastructure Race Reaches a Watershed
The latest earnings reports from the three cloud providers Microsoft, Google, and Amazon show cloud businesses accelerating across the board: AWS third-quarter revenue was $45.98 billion, up 39.3% year over year; Azure posted $33.165 billion for the quarter, up 48%; Google Cloud revenue was $30.71 billion, more than doubling year over year; and their backlogs reached $578 billion, $677 billion, and $561 billion, respectively. Over the same period, all three posted negative free cash flow: Amazon had a net outflow of $42.36 billion over the past 12 months, Alphabet was negative $9.07 billion, and Meta had a net outflow of $2.12 billion, while only Microsoft remained positive at $18.6 billion. Market reactions diverged; Alphabet fell 12.64% in a single day on slowing advertising growth and its swing to negative cash flow, and the article argues that the competitive bottleneck is shifting from chips to power, land, and grid-connection approvals.
Solidot
Alphabet's financial report shows Google AI search revenue is lower than traditional search
After Alphabet announced its third-quarter financial results, its stock price fell nearly 10%. The company disclosed that revenue generated by AI search is lower than that of traditional search, even though overall search business revenue grew 12% year-over-year to $63.25 billion. Chief Business Officer Philipp Schindler said the slowdown in search business growth stems from the lower monetization capability of AI Mode. Company spending for the quarter reached $51.4 billion, about two-thirds of which went to servers and networking equipment, while net profit was $26.17 billion, down from $35 billion in the same period last year.
SolidotRelated discussion
Solidot joined this discussion
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The Elec
Alphabet's Q3 2026 cloud revenue grew 103% year-over-year, with free cash flow at negative $9.07 billion
Alphabet announced its Q3 2026 earnings: revenue of $127.6 billion came in below analysts' expectations of $128.2 billion, while Google Cloud revenue grew 103% year-over-year to $30.71 billion. Net profit fell about 25% year-over-year to $26.17 billion, and free cash flow was negative $9.07 billion, further deteriorating from negative $5.9 billion in the previous quarter, with shares falling nearly 10% after hours. CFO Anat Ashkenazi said capital expenditures will increase significantly in 2027 due to AI technology development, and on the same day Alphabet released its new-generation model Gemini 4 Carbon.
Wallstreetcn
Amazon's stock fell about 7% after its Q3 earnings report, showing AI investment pressure alongside Alphabet
Amazon's total Q3 revenue grew 12% year-over-year to $201.9 billion, below analyst expectations, and its stock fell about 7% after hours following the earnings release. AWS revenue grew 39% year-over-year to $46 billion, accelerating for the sixth consecutive quarter, but online retail growth slowed to 2% and advertising growth slowed to 11%; meanwhile, equipment and property expenditures exceeded $77 billion, and free cash flow over the past 12 months was negative $42.4 billion. This trend echoes Alphabet's single-day plunge of 13% after its search advertising revenue fell short of expectations, as market concerns grow that AI investment is suppressing cash flow and the pace of monetization.
The Guardian Technology
Alphabet's third-quarter net profit fell 25%, and its market value evaporated by $500 billion
After Alphabet announced its third-quarter earnings, its stock price fell sharply for two consecutive days, and its market value evaporated by about $500 billion. Net profit for the quarter fell 25% year over year to $26.2 billion, or $2.12 per share, below FactSet analysts' expectations; revenue rose 25% to $127.6 billion, and advertising revenue rose 11% to $82 billion. Google Cloud revenue rose 103% to $30.7 billion, and the company said sales of its self-developed TPU chips contributed significantly; capital expenditure for the quarter was $51.4 billion, and the 2026 capital expenditure guidance is $195 billion to $205 billion.
Oct 29
TechSpot
Alphabet shares fell more than 10% after hours, as Google AI search monetization lags traditional search
Alphabet's quarterly revenue was $127.6 billion, up 25% year-over-year, but earnings per share of $2.12 fell short of the expected approximately $3.01, and the stock fell more than 10% after hours. Chief Business Officer Philipp Schindler said that AI Mode's monetization capability per query is lower than traditional search, which is one of the reasons why search revenue growth slowed from 17% to 12%. Capital expenditures this quarter reached $51.4 billion, free cash flow was negative $9.1 billion, and Google Cloud revenue rose to $30.71 billion.
CNBC Technology
Alphabet's earnings miss expectations, search revenue growth slows to 12%
Alphabet's third-quarter earnings fell short of expectations across the board, with search and other revenue up 12% year over year to about $63 billion, missing expectations for a second consecutive quarter, while search query volume growth was the highest in five years. Search revenue growth slowed from 19% in the first quarter to 17% in the second quarter and then to 12% this quarter, with the company citing exchange rates as the biggest factor. The stock fell about 13% on Thursday after the earnings release, its largest one-day drop on record, and free cash flow for the quarter was negative $9 billion. Cloud revenue doubled to nearly $31 billion, with cloud backlog of about $560 billion.
The Decoder
Some investors believe Google's AI search problem is already reflected in its financial results
Google's third-quarter search revenue grew about 12%, below analysts' expectation of 15%, and some investors believe the problem of AI search queries growing fast but having low monetization capacity is beginning to show. Executive Philipp Schindler said on the earnings call that the strong growth of AI Mode queries affected revenue due to the lower level of monetization. In the same period, cloud business revenue grew 103% year over year to $30.7 billion, and the Gemini app reached 1 billion users.
Testing Catalog
AI Daily Brief: Gemini 4 Carbon Tops AA Index with 59 Points
Gemini 4 Carbon topped the AA Intelligence Index with 59 points and is being made available first to cybersecurity defenders. GitHub launched Copilot Fusion, costing about half as much as Claude Code with comparable performance; Alphabet's Q3 revenue reached $127.6 billion, up 25% year over year, with Gemini users reaching 1 billion. An unannounced GPT Image 2.6 appeared in OpenAI's API documentation, supporting marker-guided editing.
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Analytics India Magazine
Microsoft Azure September quarter revenue grew 48% year-over-year
Microsoft announced its fiscal year 2027 first quarter financial results, with Azure revenue growing 48% year-over-year, overall company revenue of 9.23 billion USD, up 19% year-over-year, and net profit growing 32% to 3.66 billion USD. Microsoft said AI infrastructure demand has exceeded available capacity, added 24 data centers this quarter, and expects Azure growth to further accelerate to 49% to 50% (at constant currency) in the December quarter. Capital expenditure this quarter was 4.52 billion USD, and CFO Amy Hood expects capital expenditure of approximately 17 billion USD for calendar year 2026; a few days before the earnings release, Microsoft offered voluntary severance packages to approximately 60,000 employees, about 27% of its 223,000 global employees.
SiliconANGLE
Alphabet's Q3 revenue and EPS both fell short of expectations, with shares dropping over 12%
Alphabet reported adjusted earnings per share of $2.67 and revenue of $127.58 billion for the third quarter, both below Wall Street expectations, sending shares down more than 12% on the day and wiping out over $500 billion in market value. The company's free cash flow was negative $9.07 billion, far below analysts' expectation of $2.7 billion, while capital expenditures of $51.36 billion also came in below expectations. CFO Anat Ashkenazi maintained full-year capital expenditure guidance of $195 billion to $205 billion and reiterated that the figure will exceed $300 billion in fiscal 2027. Google Cloud revenue more than doubled to $30.7 billion, and the Gemini app surpassed 1 billion users worldwide for the first time.
Rohan Paul
Google Cloud quarterly revenue up 103% year-over-year to $30.7 billion
Google Cloud revenue grew 103% year-over-year to $30.7 billion, while cloud business operating income more than tripled to $11.1 billion, driven mainly by demand for AI infrastructure. Google's model APIs currently process nearly 32 billion tokens per minute, more than 4 times the level a year ago, and the Gemini app has reached 1 billion users. TPU chip sales are making a substantive contribution to cloud growth; Oracle has begun offering TPUs, and OpenAI is reportedly also purchasing them, but Google expects most TPU revenue to materialize only by 2027; AI data center spending pushed free cash flow to a negative of more than $9 billion, wider than last quarter's $5.9 billion shortfall, while shared AI research costs rose 71% year-over-year to $7.7 billion.
Oct 28
Google BlogFirst-partySelected
Alphabet Q3 2026 Earnings: Revenue Up 25% Year-over-Year, Gemini App Reaches 1 Billion Users
Alphabet's Q3 2026 revenue grew 25% year-over-year, with annualized revenue reaching $500 billion, and Google Cloud revenue up 103%. CEO Sundar Pichai said first-party model APIs process nearly 32 billion tokens per minute, 40% more than last quarter; the Gemini app has reached 1 billion users, making it the fastest-growing product in Google's history. A new model in the Gemini 4 series, Carbon, was also released that day; it ranks first on the Artificial Analysis Intelligence Index with a score of 59, will first be made available to select trusted cybersecurity defenders, and is being tested by the U.S. government.
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