Alphabet Q3 Earnings: Search Revenue Slows While Cloud Growth Accelerates
Alphabet shares experienced a significant decline following its third-quarter earnings report, primarily driven by search revenue growth decelerating to 12% ($63.35 billion), missing analyst estimates of $64.96 billion. This slowdown was attributed to currency fluctuations and lower monetization rates for AI-driven queries compared to traditional search methods. In contrast, Google Cloud emerged as a major growth driver, with revenue more than doubling to $30.7 billion, surpassing consensus expectations. The cloud segment also demonstrated significant operating leverage, with operating margins rising to 36.2%. Despite the search headwinds and a reported EPS miss due to investment paper losses and AI infrastructure spending, Alphabet's total revenue grew 25% to $127.6 billion.
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Topics: AI Monetization Alphabet Q3 Earnings Cloud Computing Search Revenue Growth