Business
Alphabet shares plunge after profit miss, ad slowdown and record AI spending
October 29, 2026 at 07:30 AM
Alphabet's third-quarter net profit fell 25% to $26.2bn, missing analyst forecasts, advertising growth slowed, and shares dropped more than 10% after hours.
- Alphabet reported net profit of $26.2bn for July–September, down 25% year over year and well short of analyst expectations.
- Advertising revenue grew 11% to $82bn, with search growth slowing to 12%, while Google Cloud revenue jumped 103% to $30.7bn.
- Alphabet spent $51.4bn on capital expenditures, more than double a year earlier, and forecasts $195bn to $205bn for 2026.
- Google announced it is expanding ads in AI-powered Search to international markets; chief business officer Philipp Schindler said the monetization footprint is going global.