Google stock plunges 10% after Alphabet’s $127.6 billion quarter disappoints Wall Street

Alphabet’s shares fell more than 10% after it reported third-quarter revenue of $127.58 billion, below the $128.22 billion analysts expected. Adjusted earnings were $2.67 per share, missing the $3.02 forecast and marking its first double miss in almost four years; net income dropped to $26.17 billion from $34.98 billion a year earlier. Free cash flow was negative $9.07 billion versus an expected $2.70 billion deficit, as AI spending weighed, and Alphabet kept its capital expenditure budget at $195 billion to $205 billion. Google Cloud revenue more than doubled to $30.7 billion, beating expectations, while Search revenue rose 12% to $63.35 billion but missed the $64.96 billion estimate.