Alphabet Shares Slide After Google’s Sales Miss Forecasts

WHO:

ABC News Tech - Alphabet Inc. is Google’s parent company.

Yahoo Finance - Google CEO Sundar Pichai said the Gemini app has more than 1 billion users and is the fastest-growing app in Google’s history.

Yahoo Finance - Google said its Gemini 4 Carbon model outperforms Gemini 4 Argon, OpenAI’s GPT-6 Astra, and Anthropic’s Claude Opus 5.5.

Yahoo Finance - Meta CEO Mark Zuckerberg said 10 million people have set up Meta’s Muse AI agent; the article says most users access it for shopping.

Yahoo Finance - Oracle announced it would be the first company to purchase Google AI processors for use in its own data centers.

Techmeme, citing CNBC reporter Samantha Subin - Alphabet’s third-quarter results included negative free cash flow and capital expenditure figures.

WHAT:

Fast Company - Alphabet’s Google Cloud revenue increased 103%.

Fast Company - Alphabet’s revenue of $127.58 billion was below CNBC’s cited Wall Street expectation of $128.22 billion.

Fast Company - Google’s adjusted earnings per share was $2.67, versus the $3.02 expected by Wall Street.

NBC News - Alphabet shares fell as much as 15.8%, erasing more than $500 billion in market value and putting the company on course for its worst single-day stock decline.

Fast Company - Alphabet reported consolidated third-quarter revenue growth of 25%, to $127.6 billion.

Fast Company - Alphabet’s adjusted earnings per share was $2.67, compared with analysts’ expectation of $3.02.

Fast Company - Google Search revenue was about $63.4 billion, up around 12% but approximately $1.5 billion below Wall Street expectations.

Fast Company - Analysts expected negative free cash flow of about $2.7 billion; Alphabet reported negative $9.07 billion.

Fast Company - Alphabet’s roughly $51.4 billion in quarterly AI-related capital spending exceeded the approximately $42.3 billion in cash it took in by more than $9 billion.

Fast Company - Alphabet’s previous largest post-earnings share-price decline was 9.77%.

ABC News Tech - Alphabet reported strong third-quarter revenue growth, but revenue fell short of Wall Street expectations.

Yahoo Finance - Google reported earnings per share of $2.12 and revenue of $127.58 billion; analysts expected $3.01 per share and $127.93 billion in revenue.

Yahoo Finance - Revenue excluding traffic acquisition costs was $111.21 billion, versus the $111.29 billion analysts anticipated.

Yahoo Finance - Advertising revenue was $82.01 billion, below expectations of $83.5 billion. Google Cloud revenue was $30.71 billion, above the $29.1 billion forecast; Cloud growth was 103%.

Yahoo Finance - Google shares fell more than 8% after the results; the article’s after-hours quote showed $287.70, down $34.19, or 10.62%. Its closing quote was $321.89, up $5.06, or 1.60%.

Yahoo Finance - Google’s free cash flow declined from negative $5.85 billion in the second quarter to negative $9.06 billion in the third quarter.

Techmeme, citing CNBC - Alphabet reported third-quarter negative free cash flow of $9.07 billion, worse than expected, and capital expenditures of $51.36 billion, versus an estimate of $55.09 billion. It maintained its fiscal-year capital expenditure forecast of $195 billion to $205 billion.

WHERE:

Yahoo Finance - Google CEO Sundar Pichai was photographed at the company’s I/O developers conference in Mountain View, California.

WHEN:

Fast Company - Alphabet’s third-quarter 2026 results covered the three-month period ending September 30.

WHY:

Fast Company - Google’s approximately $51.4 billion in quarterly capital spending was more than $9 billion above the roughly $42.3 billion in cash it brought in.

Yahoo Finance - Traders sold CoreWeave shares amid questions about the company’s large debt load, sending broad parts of the market lower.

Bloomberg Markets - Alphabet’s results revived investor concerns that the company was losing ground despite heavy AI spending.

Fast Company - Investors were concerned that AI chatbots could displace traditional Google Search, and that Google’s AI investments were not yet producing returns.

Yahoo Finance - Google missed revenue projections because advertising sales were lower than anticipated.

Yahoo Finance - The article reported investor concern over whether major cloud and technology companies’ large AI investments will pay off, alongside uncertainty about Google’s competition from Meta’s Muse.

HOW:

Fast Company - Alphabet said its fiscal 2027 capital expenditures could reach $300 billion as it continues building AI data centers.

Yahoo Finance - Google released Gemini 4 Carbon shortly before reporting its results; the company said it outperforms Gemini 4 Argon, released two weeks earlier, and named competing models it said Carbon beats.

(UPDATED October 29, 2026 21:02 UTC)

Alphabet shares plunged as much as 15.8% after the company reported revenue of $127.58 billion and adjusted earnings of $2.67 a share, both below Wall Street expectations. Google Cloud revenue surged 103% to $30.71 billion, but advertising sales missed forecasts, while free cash flow sank to negative $9.07 billion amid $51.36 billion in capital spending on AI. Google says its Gemini app has more than 1 billion users and its new Gemini 4 Carbon model outperforms leading rivals, while Alphabet says capital spending could reach $300 billion in fiscal 2027 as it builds AI data centers.

(UPDATED October 29, 2026 16:02 UTC)

Alphabet shares fell as much as 15.8% after the company reported quarterly revenue of $127.58 billion and adjusted earnings of $2.67 a share, both below Wall Street expectations, wiping out more than $500 billion in market value. Investors also focused on free cash flow of negative $9.07 billion and roughly $51.4 billion in AI-related capital spending, as concerns grew over whether heavy investments will pay off and whether AI could weaken Google Search. Google said Gemini has more than 1 billion users and introduced its Gemini 4 Carbon model, while Google Cloud revenue beat forecasts with growth of 103%; Alphabet said capital spending could reach $300 billion in fiscal 2027.

(UPDATED October 29, 2026 14:05 UTC)

Alphabet’s third-quarter revenue grew 25% to $127.6 billion, but earnings and advertising sales fell short of expectations, while free cash flow plunged to negative $9.07 billion amid heavy AI spending. Google shares dropped more than 8% after the results, as investors weighed whether its huge investments will pay off and whether AI chatbots could threaten traditional Search. CEO Sundar Pichai said the Gemini app has surpassed 1 billion users, while Google touted its new Gemini 4 Carbon model and Oracle said it would be the first company to buy Google AI processors for its data centers.

(UPDATED October 29, 2026 00:01 UTC)

Alphabet reported strong third-quarter revenue growth, but earnings and revenue fell short of Wall Street expectations, with weaker-than-expected advertising sales weighing on results. Google Cloud revenue topped forecasts and grew 103%, while free cash flow was negative $9.07 billion and the company maintained its fiscal-year capital spending forecast; Google shares fell more than 8% after the results. CEO Sundar Pichai said the Gemini app has more than 1 billion users, and Google claimed its new Gemini 4 Carbon model outperforms rival models as investors weigh the returns on major AI investments.