Alphabet Posts $127.58 Billion in Q3 Revenue, Below Estimates

Alphabet's third-quarter results paired a revenue shortfall with more than doubled Google Cloud revenue, while weaker search advertising and rising AI-related spending raised investor concerns.

The company reported $127.58 billion in revenue for the quarter, below analyst expectations. Profit also came in below market expectations. Google Cloud revenue was more than twice its level a year earlier.

Search advertising moved in the opposite direction, performing below expectations. The quarter showed different results across the businesses highlighted: cloud revenue grew rapidly, while advertising was weaker. Rising AI-related spending added a further pressure point and was a concern for investors.

The quarter's mixed picture combined misses in total revenue and profit with rapid growth in Google Cloud. That growth contrasted with search advertising's weaker-than-expected performance, while higher AI spending remained another concern for investors.