Alphabet shares fall 8% after third-quarter revenue miss

Alphabet reported third-quarter revenue of $127.6 billion on October 28, 2026, up 25% from a year earlier but slightly below analyst expectations, according to digitaltoday.co.kr. The company's shares fell more than 8% in after-hours trading.

Google Cloud was the standout: revenue reached $30.7 billion, up 103% year over year and above expectations. The service segment brought in $96.3 billion, short of the expected $98.5 billion.

Search advertising revenue growth was 12% in the quarter. Google said search query volume growth was the highest in the past five years, but did not disclose figures.

Free cash flow was negative $9.1 billion, a wider deficit than the market expected, and third-quarter capital expenditure rose to $51.4 billion from $44.9 billion in the second quarter. Google released the Gemini 4 Argon AI model in September and recently announced Gemini 4 Carbon.

Anthropic deal adds to cloud pipeline

Anthropic's S-1 filing disclosed that the AI company will pay Google about $114.5 billion in computing costs from April 2026 to July 2033. Google holds more than 5% of Anthropic. In June 2026, Google announced a plan to sell $85 billion in stock to fund AI infrastructure, and it has set a 2026 capital investment target of $195 billion to $205 billion.

Search advertising growth has been sliding: it was 19% in the first quarter of 2026 and 17% in the second quarter, when Google posted its first free cash flow deficit since going public, according to the Wall Street Journal.