Business · Updated 29 Oct, 09:43 am IST

Alphabet misses profit expectations as revenue growth falls short

Why it matters for readers: It explains why a major tech company’s shares dropped and how AI and cloud are changing its business mix.

Alphabet’s Q3 revenue rose 25% year‑over‑year to about $127.6 billion but was slightly below analyst forecasts.1 2
Net income fell to $26.17 billion, down from $34.98 billion a year earlier, with earnings per share of $2.12 that missed estimates.1 2
The company recorded an $8.7 billion loss on equity investments, which reduced earnings and was tied to its stake in SpaceX in reporting.1 2
Advertising revenue growth slowed (search up 12% to $63.4 billion; YouTube ads up 9% to $11.2 billion) while Google Cloud revenue jumped 103% to $30.7 billion.2
Alphabet said capital expenditures are expected to increase significantly in 2027 as it continues to invest in AI and infrastructure, and highlighted that the Gemini app reached 1 billion users.1 2

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29 Oct, 08:11 am · ET Tech
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29 Oct, 09:43 am · The Hindu Technology
Google owner Alphabet’s shares plummet on profit miss, ad slowdown