Alphabet Reports Q3 Revenue and EPS Miss Amid Rising AI Capital Expenditures
Alphabet (GOOGL) shares fell nearly 10% in after-hours trading following a quarterly report that missed consensus estimates for both revenue and earnings per share. While total revenue grew 25% year-over-year to $127.6 billion, it fell short of the projected $128.2 billion. Adjusted EPS of $2.67 also lagged behind the expected $3.02, marking the company's first top- and bottom-line miss in nearly four years. The results highlighted a tension between massive growth in Google Cloud and concerns regarding Search monetization. While Cloud revenue doubled to $30.71 billion and Gemini usage surged, decelerating Search revenue growth fueled fears that AI integration may be cannibalizing traditional advertising margins. Furthermore, Alphabet signaled significant increases in capital expenditure, with projections suggesting capex could exceed $300 billion by 2027 to support AI infrastructure.
Topics: AI Spending Alphabet Q2 Earnings EPS Miss Google Cloud Revenue Revenue Miss
Part of the story Alphabet Reports Search Revenue Miss Amid Rising AI Competition and Negative Free Cash Flow (4 articles)