Alphabet (NASDAQ: GOOGL), Google’s parent company, reported third-quarter revenue of $127.6bn, up 25%, but profit per share fell and the shares were down 7.4% in early after-hours trading on Wednesday. Results came after the US close today.
The stock finished the regular Nasdaq session at about $326, roughly 20% below its May high. After-hours trading is thin and prices can move sharply, so Thursday’s US open is the first full session to trade on the numbers.
Alphabet said Cloud revenue grew 103% to $30.7bn, which it called record growth, and Cloud operating income reached $11.1bn against $3.6bn a year earlier. Group operating income rose 30% to $40.6bn. Chief executive Sundar Pichai said:
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We had a strong quarter and are now on a half-trillion dollar revenue run rate.
Sundar Pichai, Alphabet chief executive
The catch is earnings. Diluted earnings per share were $2.12, down from $2.87, after an $8.7bn loss on equity securities cut net income by $6.7bn, or $0.55 a share. By our calculation, adding that back gives about $2.67, still short of the Yahoo Finance consensus of $3.01.
Third quarter
Actual
Yahoo Finance consensus
Revenue
$127.58bn
$127.91bn
Diluted EPS
$2.12
$3.01
Revenue was about 0.3% below the average of 41 analysts, and the EPS figure is the average of 44.
The cost of growth is visible in the cash flow. Capital expenditure was $51.4bn against $24.0bn a year earlier, and free cash flow, the cash left after that spending, was negative $9.1bn. Alphabet made no share buybacks, against $11.5bn a year earlier.
It raised $28.7bn in new notes and $12.4bn through an at-the-market programme, which sells new shares into the market. Long-term debt stood at $125.1bn, against $46.5bn at the end of 2025.
Alphabet’s weekly share price over the past year, to the results on the 28th of October (regular-session closes; after-hours trading not shown)
The release shows faster growth alongside heavier spending, more debt and new share issuance.
Alphabet’s earnings call begins at 4.30pm in New York, 8.30pm UK time.
