{"id":750270,"date":"2026-10-29T14:15:46","date_gmt":"2026-10-29T11:15:46","guid":{"rendered":""},"modified":"2026-10-29T14:15:46","modified_gmt":"2026-10-29T11:15:46","slug":"google-parent-alphabet-tumbles-after-profit-disappoints","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/google-parent-alphabet-tumbles-after-profit-disappoints\/","title":{"rendered":"Google parent Alphabet tumbles after profit disappoints"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6aee2356c2cfe\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6aee2356c2cfe\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/google-parent-alphabet-tumbles-after-profit-disappoints\/#%E2%80%9CGoogle_parent_Alphabet_tumbles_after_profit_disappoints%E2%80%9D\" >&#8220;Google parent Alphabet tumbles after profit disappoints&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/google-parent-alphabet-tumbles-after-profit-disappoints\/#Cloud_influence_grows\" >Cloud influence grows<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CGoogle_parent_Alphabet_tumbles_after_profit_disappoints%E2%80%9D\"><\/span>&#8220;Google parent Alphabet tumbles after profit disappoints&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/nypost.com\/wp-content%2Fuploads%2Fsites%2F2%2F2026%2F10%2Fgoogle-alphabet-earnings.jpg?quality%3D90%26strip%3Dall%261793212400\" \/><\/p>\n<div>\n<p>Google parent Alphabet on Wednesday missed Wall Street profit and revenue expectations, and AI spending accelerated its cash burn, sending its shares down more than 10% in extended trading.<\/p>\n<p>Capital expenditures, driven by AI, will increase significantly in 2027, said Chief Financial Officer Anat Ashkenazi, adding that this year\u2019s capex forecast was unchanged. She said she also expected near-term margin pressure from the use of third-party cloud capacity.<\/p>\n<p>The tech giant reported negative free cash flow of $9.07 billion, compared with analyst expectations that it would come close to breaking even, according to data compiled by LSEG.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>The tech giant reported negative free cash flow of $9.07 billion, compared with analyst expectations that it would come close to breaking even. <span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>The results reflect the huge costs of the AI buildout, with investors in the sector concerned both by potential overspending and the risk of falling behind rivals by not spending enough.<\/p>\n<p>The quarterly cash burn is an increase from $5.9 billion in the prior quarter, which was the first time the company went into the negative in its 22-year history as a public company.<\/p>\n<aside class=\"single__inline-module aligncenter wp-block-nypost-editor-primary-tag\">\n<\/aside>\n<p>Alphabet\u2019s cash burn was driven by spending to boost cloud capacity and fund AI research. It reported a $7.66 billion operating income loss in \u201cAlphabet-level activities,\u201d which it said primarily reflected expenses related to AI research and development.<\/p>\n<p>The tech giant\u2019s total revenue for the third quarter was $127.6 billion, short of analysts\u2019 estimate of $128.2 billion, according to LSEG data.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Third quarter was $127.6 billion, short of analysts\u2019 estimate of $128.2 billion. CEO Sundar Pichai, above. <span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>The revenue miss was caused by Google\u2019s core advertising business that reported $82.01 billion in revenue, about $1.41 billion short of expectations.<\/p>\n<p>Net income available to common shareholders fell 25% to $26.17 billion, and adjusted earnings per share of $2.67 missed Wall Street targets of $3.02.<\/p>\n<p>Earlier on Wednesday, Google sought to preempt its results and counter the perception it had fallen behind in the AI race by announcing its new <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/blog.google\/innovation-and-ai\/models-and-research\/gemini-models\/introducing-gemini-4-carbon\/\" target=\"_blank\" rel=\"noopener\">Gemini 4 Carbon model<\/a>, which CEO Sundar Pichai told analysts during the earnings call meant it was again \u201cleading at the frontier.\u201d<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Alphabet\u2019s cash burn was driven by spending to boost cloud capacity and fund AI research. <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cloud_influence_grows\"><\/span>Cloud influence grows<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Revenue at Google Cloud exceeded estimates and more than doubled to $30.71 billion in the third quarter ended September 30, but was not enough to make up for the ad-side performance.<\/p>\n<p>Cloud chief Thomas Kurian made his debut on an earnings call, a sign of the enterprise-oriented business unit\u2019s increased influence within a traditionally consumer-dominated company.<\/p>\n<p>Kurian said sales of Google\u2019s tensor processing units (TPUs), which compete with Nvidia\u2019s GPU chips, had become a meaningful contributor to his business unit.<\/p>\n<p>The third-largest cloud services provider globally, behind Amazon Web Services and Microsoft\u2019s Azure, Google Cloud has continued to expand enterprise commitments, supported by multi-year cloud and AI infrastructure deals across cybersecurity, retail and financial services.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Google sought to preempt its results and counter the perception it had fallen behind in the AI race by announcing its new Gemini 4 Carbon model. <span class=\"credit\">Hans Lucas\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>Alphabet, Microsoft, Amazon, and Meta are projected to collectively spend well over $700 billion in 2026 to expand AI data center footprint, chips and high-performance networking capacity.<\/p>\n<p>While industry-wide supply bottlenecks for advanced silicon and data-center power have persisted, Alphabet\u2019s investments in custom tensor processing units alongside third-party GPUs have helped expand its service delivery capabilities.<\/p>\n<\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Capital expenditures, driven by AI, will increase significantly in 2027, said Chief Financial Officer Anat Ashkenazi, adding that this&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-750270","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/750270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=750270"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/750270\/revisions"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=750270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=750270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=750270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}