Alphabet Posts Q3 Revenue and EPS Shortfall, Cloud Revenue Doubles

Overview

• Alphabet reported third-quarter revenue of $127.58 billion and earnings per share of $2.12, both below analyst expectations.
• Google advertising revenue came in below forecasts at about $82.01 billion, reflecting softer search and YouTube ad sales.
• Google Cloud revenue grew roughly 102–103% to $30.71 billion, driven by strong demand for AI infrastructure and TPU compute for external customers.
• The company recorded an $8.7 billion loss on equity securities that materially reduced net income to $26.17 billion and lowered diluted EPS by roughly $0.55.
• Shares fell sharply in after-hours trading following the release, and Alphabet disclosed record capital expenditures to expand AI datacenter and compute capacity while launching the new Gemini 4 Carbon model.