Alphabet’s Q3 Earnings Miss Overshadowed by Google Cloud Growth
+12 new sources since this summary was written
Alphabet reported third-quarter results on October 28, with earnings per share of $2.12 against a $3.02 consensus estimate. Revenue rose 25% year over year to $127.6 billion, while Google Cloud revenue increased 103% to $30.7 billion. A $8.7 billion loss on equity securities and higher infrastructure spending weighed on profitability, and Alphabet shares fell 7% after the report.
Why it matters
The results increase investor focus on whether Alphabet’s AI infrastructure spending can produce sufficient earnings and cash flow. The immediate market reaction was negative, with shares falling 7% after the earnings release.
Key facts
- 1Alphabet reported third-quarter earnings per share of $2.12, below the $3.02 analyst consensus. fxleaders.com
- 2Third-quarter revenue increased 25% year over year to $127.6 billion. fxleaders.com
- 3Google Cloud revenue rose 103% to $30.7 billion, while operating income reached $11.1 billion. fxleaders.com
- 4Alphabet recorded a $8.7 billion net loss on equity securities in the quarter. fxleaders.com
- 5Capital expenditure was $51.4 billion in the quarter, compared with $24 billion a year earlier. fxleaders.com
- 6Alphabet shares fell 7% after the earnings release. fxleaders.com
Open questions
- The materials report different consensus revenue figures, including $127.22 billion, $127.69B and $128.2B, so no consensus revenue figure is used as a decisive fact.
- The materials report different post-earnings share declines, ranging from 7% to more than 8%.
Summary written by AlphAI AI Desk from 20 of 92 sources. Not investment advice. Figures are as stated by the linked sources.